New Morgan Stanley Price Target After Anthropic IPO Update

Anthropic PBC has confidentially filed its initial IPO paperwork with the SEC but some details are starting to trickle out. One such piece is that the company behind the Claude chatbot has picked Morgan Stanley (MS) and Goldman Sachs (GS) to lead its initial public offering. Other indications suggest JPMorgan Chase & Co. (JPM) is also in on the deal. Timing looks to be as soon as October.

We’ll get more details when the S-1 filing becomes public, just like we did with the one from SpaceX (SPCX). Earlier on Wednesday, we discussed how Elon Musk is planning to set a fixed price of $135 per share for the SpaceX. Applied to the planned sale of 555.6 million shares that points to a $75 billion offering, and at that share price the total company would be valued at $1.75 trillion. Both Goldman Sachs and Morgan Stanley are lead underwriters for that offering, and that means they are poised to take and split the lion’s share of what is looking to be $500 million in investment banking fees from that transaction alone.

Morgan Stanley is also involved with the upcoming Quantinuum (QNT) offering, which is reportedly well oversubscribed. It was also the lead manager for the Applied Aerospace & Defense (AADX) IPO that priced earlier this week.

The above deals and expectations for a robust IPO market this summer is leading us to bump up our MS price target to $225 from $205 and the $203 market consensus. As MS shares move toward that new target, there is the possibility that will lead the position to become one that moves past a 4.5% position size. Should that happen, it will more than likely trigger some prudent Portfolio action on our part.

And for members who are wondering if now is the time to chase MS shares, the RSI level that continues to be over 70, meaning the shares are still in an overbought condition.

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At the time of publication, TheStreet Pro Portfolio was long MS shares.