Morgan Stanley(NYSE: MS) in the first quarter of FY 17  has reported 74 percent jump in quarterly profit due to an increase in the trading gains as investors shuffled their portfolios after the interest rate hikes by the Federal Reserve. The Bond trading has remained strong across the U.S. during the first quarter, gaining from a shift to higher interest rates. The Fed had raised the rates twice over a span of three months, which is once in December and then in March. Therefore, MS’s bond trading revenue for the quarter has doubled year over year as it posted $1.7 billion compared to $873 million in the year-earlier period. Accordingly, MS stock rallied over 2.7% this morning (on  9:54AM EDT April 19th, 2017; Source: Google finance).

Moreover, the company’s institutional securities segment, that encompasses fixed income and equities trading, has posted the revenues of $5.15 billion, which is a 39.2 percent year-over-year increase. The analysts were expecting the $4.69 billion revenue from the institutional securities segment. The Global wealth management revenue in the 1Q 2017 is of $4.1 billion compared to $4.09 billion expected by the analysts’ consensus.

Additionally, Institutional securities segment has posted $5.15 billion compared to $4.69 billion expected by the analysts’ consensus. The investment banking segment posted the revenue of $1.55 billion compared to $1.16 billion expected by the analysts’ consensus. The fixed income trading segment has posted the revenue of $1.7 billion compared to $1.58 billion expected by the analysts’ consensus. The Equities trading revenue has decreased marginally but still came in above analysts’ expectations as it posted the revenue of $2.0 billion compared to $1.96 billion expected by the analysts’ consensus.

Meanwhile, Morgan Stanley in the first quarter of FY 17 has reported the adjusted earnings per share of $1, beating the analysts’ estimates for the adjusted earnings per share of 89 cents. The company had reported the adjusted revenue of 19.7 percent to $9.7 billion in the first quarter of FY 17, beating the analysts’ estimates for revenue of $9.266 billion.

In addition, Morgan Stanley during the quarter ended March 31st, 2017, has repurchased approximately $750 million of its common stock or approximately 17 million shares. MS as declared a $0.20 quarterly dividend per share, payable on May 15th, 2017 to common shareholders of record on May 1st, 2017.

Morgan Stanley stock has risen 59.98% in the last one year (source: Google Finance). According to tipranks.com, 8 analysts has covered the stock while recommending a “Moderate Buy”. MS has an average price target of $46.33, which is a further upside of 12.42%.