Morgan Stanley (MS) said on Monday that it had initiated a long position in the Russian Rouble against a 50-50 basket of the US Dollar and the Euro, as it targets a 6% surge in Russia’s currency.
Morgan Stanley shares closed higher for a third consecutive trading session in New York on Monday. The stock went up 1.38% ($1.01) to $74.23, after touching an intraday high at $74.29, or a price level not seen since January 22nd ($74.70).
Shares of Morgan Stanley have risen 8.32% so far in 2021 compared with a 4.25% gain for the benchmark index, S&P 500 (SPX).
In 2020, Morgan Stanley’s stock went up 34.06%, thus, it again outperformed the S&P 500, which registered a 16.26% gain.
According to the bank’s analysts, new proposed sanctions by the United States in association with the poisoning and jailing of Kremlin critic Alexei Navalny would not materially affect Russia’s macroeconomic outlook, while higher oil prices should support the Rouble.
“We think it’s time to get back into Russian assets,” the Wall Street bank’s analysts wrote in a note with a title “Enough Waiting, Time To Buy”.
“The uncertainty is the response by the U.S. to the cyber attacks, which is a bigger risk and can cause a wobble in asset prices, but we think this might be an opportunity to increase exposure,” they added.
Analyst stock price forecast and recommendation
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Morgan Stanley’s stock price, have a median target of $84.00, with a high estimate of $98.00 and a low estimate of $67.00. The median estimate represents a 13.16% upside compared to the closing price of $74.23 on February 8th.
The same media also reported that at least 17 out of 28 surveyed investment analysts had rated Morgan Stanley’s stock as “Buy”, while 10 – as “Hold”.