The top rungs of Wall Street are not immune to the coronavirus.
First Jefferies Group (JEF) - Get Report Chief Financial Officer Peregrine "Peg" Broadbent died from covid-19 on March 29. Now, a media report says, Morgan Stanley (MS) - Get Report CEO James Gorman has informed the bank’s workers that he, too, was infected with the coronavirus and recovered.
While Gorman said he tested positive for the virus, he was never hospitalized, Bloomberg News reported.
He quarantined himself at home, and his doctor has now found him to be recovered. Gorman continued to run the firm during his absence.
Morgan Stanley’s shares recently traded at $41.05, up 4.3%. That's more than double the 1.7% gain for the S&P 500 index.
Morgan Stanley’s stock has dropped 19% over the past three months but is off only 0.69% for the past month. The S&P 500 has fallen 14% over the past three months and 5% over the past month.
Morningstar analyst Michael Wong says Morgan Stanley has a long road to recovery from the impact of the coronavirus, but it will get there.
“While earnings will likely be depressed for Morgan Stanley over the next one to three years, as multiple risks that we were contemplating over the previous couple of years are playing out, ... the company has a fairly strong business model and its core earnings will eventually stage a nice recovery,” he wrote in a report two weeks ago.
“The company is also relatively diversified, so there should be some revenue lines that will do well” along the way, the analyst said.
Wong puts fair value for the stock at $49.