Morgan Stanley's shares closed at $17.78 Friday, returning 19% year-to-date, following a 44% decline during 2011.
The shares trade for just 0.6 times their reported Sept. 30 tangible book value of $30.53, and for nine times the consensus 2013 EPS estimate of $2.02, among analysts polled by Thomson Reuters.
Hawken has a neutral rating on Morgan Stanley, with a $19 price target, and said that his price target "assumes MS will trade at 0.6x our 2Q13 TBV estimate in 12 months (vs. its 10-yr avg. of 1.6x)." The analyst said that "MS needs to drive improved capital efficiency and returns in FICC before it is likely to generate a higher multiple from current levels," and that "until we see more on this front, we believe MS appears fairly valued."
Morgan Stanley on Monday announced that Paul Taubman, currently the company's co-president of Institutional Securities, would retire at the end of the year, and that Colm Kelleher the other co-president of Institutional Securities, would take over as sole head of the division in January.
The company also announced "the appointment of Mark Eichorn and Franck Petitgas as Global Co-Heads of Investment Banking with day-to-day responsibility globally for client coverage, M&A and capital markets," with both reporting to Kelleher.
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Written by Philip van Doorn in Jupiter, Fla.