Morgan Stanley Eyes Growth in Wealth, AI, and Travel Sector

Wednesday, September 16, 2026·Consolidated from 4 sources

Morgan Stanley is signaling optimism about future growth drivers, including its wealth management division, artificial intelligence financing, and a potential rebound in deal-making. In contrast, the firm initiated coverage on Expedia with an 'Underweight' rating, suggesting caution in that specific online travel segment. Additionally, the investment management arm is undertaking a significant conversion of mutual funds to ETFs.

Morgan Stanley's strategists are highlighting several key areas poised to fuel the firm's future expansion. According to coverage today, the wealth management business is seen as a significant growth engine. Furthermore, the firm anticipates opportunities in financing the burgeoning field of artificial intelligence.

Adding to its forward-looking outlook, Morgan Stanley also points to a potential recovery in mergers and acquisitions and other deal activity as a contributor to growth. This diversified view suggests confidence in multiple facets of the financial services landscape.

However, the firm's sector-specific views show some divergence. In new coverage initiated today, Morgan Stanley identified its preferred stock within the online travel sector. Conversely, the firm assigned an "Underweight" rating to Expedia, with shares of the online travel company experiencing a decline following this assessment.

In a separate strategic move, Morgan Stanley Investment Management is set to convert nearly $10 billion in municipal mutual funds into exchange-traded funds (ETFs). This initiative reflects a broader industry trend toward ETF structures and aims to streamline offerings for investors within the municipal bond space.

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