Carrier also said that "we value the brokers based on the relationship between ROTE (return on tangible equity) and P/TB (price to tangible book), which has a high historical correlation. Our $20 PO is based on a target P/TB multiple of 0.75x our forward tangible book estimate, which is in line with our forecasted ROTE of roughly 7.5%."
Interested in more on Morgan Stanley? See TheStreet Ratings' report card for this stock.
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