Current price: $33.91Target price: $37.80 Morgan Stanley (MS) is an American bank holding company that provides diversified financial services worldwide. MS operates a global securities business, which serves individual and institutional investors and investment banking clients. The focus of MS business is wealth management (45% of FY14 Revenue), equity and FICC trading (34% of FY14 Revenue and investment banking with underwriting services (16%). By the end-November 2015, Morgan Stanley is leading public IPOs, and one of three global equity underwriters. In addition, MS is second in global M&A rating (after Goldman Sachs). Morgan Stanley based on high-margin wealth management business branch that share in revenue rose from 20% in 2005 to 43% 2014. In addition, Holding run small asset-management business direction in 2015. Right now, just 1% of Morgan Stanley's more than 3.5 million wealth-management clients actively use its retail-banking products. MS plans to offer savings accounts and certificates of deposits next year to wring more profit from its wealth-management clients. American financials peer-group: Company Assets Free-float, % Mcap, mln. USD Price change, % YTD DVD yield Pretax margin,% ROE,% P/BV 3Q 2015 3Q 2015 3Q 2015 11.2015 2014 2014 2014 2015F 2014 2015F Morgan Stanley 801 510 78 65 928 -12.6 0.90 19.37 4.8 8.5 1.17 0.96 Goldman Sachs 856 240 93 85 6623 -1.22 1.16 35,79 11.2 11.5 1.13 1.11 JPMorgan Chase 2 573 126 99 249 065 +7.93 2.52 31.62 10.0 9.75 1.1 1.12 Bank of America 2 104 534 100 184 770 -1.34 0.67 8.14 1.7 6.62 0.83 0.78 Citigroup 1 842 530 96 163 636 +1.18 0.07 18.68 3.37 8.1 0.82 0.78 Morgan Stanley like one of the top US financial institution had highest P/BV ratio in 2014, but ROE and margin was more than two times low than leaders of capital return like Goldman and JP. MS Holding long-term strategy includes increasing wealth management profit margin up to 25%, and restructuring FICC trading business to archive 10% return. Also holding plans to approach 10% Holding ROE target. The stock price now is 33.91 and here some points of possible price change by the end of the year 2015:revenue rose ~1% in 2010-2014 and expected 6% in 2015-2016ROE expected up to 8.5% in 2015wealth management pretax margin expected ~23%weak 3Q trading results and declining indexes is expected to be counterbalanced strong 4Q by the end of 2015FY.MS is repurchasing its stocks in 2015 and may buy up to 3.1 bln. USD (5% of stocks) by the end of 2Q 2016, that will also boost capital return. After unchanging FED-rates in September main American stock indexes gain DOW +11%, S&P +10%. MS price rose with indexes, so we can see double bottom in the end of September and staidly growth after high volume buy up to the mid-November. With strong competitive strategy that already implied and business optimization that will continue in 2016, we recommend BUYING Morgan Stanleywith TP~37.8 (upside ~11%).