Morgan Stanley (NYSE:MS) Book Value Up on CICC Sale

News that Morgan Stanley (NYSE:MS) was given regulatory approval to sell its stake in CICC has caused Ticonderoga to give their imput on the impact on the financial institution.

Ticonderoga said, "MS announced this morning that it has received regulatory approval to sell its stake in CICC. It will book a $700mm pre-tax gain upon completion; we estimate that this will add roughly $0.25 to $0.30 to tangible book value, or about a 1% increase on our Q4’10 estimate. If the transaction closes in Q4, we estimate TBV will end the quarter at $27.41; shares currently trade at 94% of our Q4'10 TBV estimate pro forma for the transaction...While not a huge add to book value, anything accretive at this point is a positive, in our view. Coupled with an improvement in equity capital markets, as well as some positive early signs of a rotation into equities (bond sell-off & outflow and potential Bush tax extension), MS offers a compelling opportunity, in our view."

Ticonderoga maintains their "Buy' rating on Morgan Stanley, which closed Wednesday at $26.46, up $0.81, or 3.16 percent. They have price target of $29 on them.