Morgan Stanley reports that it is overweight on JPMorgan Chase & Co. (NYSE:

) “as we expect it to take share (given its stronger balance sheet and market position), benefit from continued credit improvement and return capital to shareholders in 2011 which should all lead to rising ROE.” “JPM is cheap at 1x book while able to earn 13% ROE over the next year+,” Morgan Stanley writes. ”Our $61 target price provides 35% upside from Tuesday's close of $45.16.” JPMorgan Chase closed Tuesday at $45.16.