Morgan Stanley Initiates CIT At Equal-Weight, $48 PT

Morgan Stanley initiates coverage of CIT Group Inc. CIT at Equal-weight with a $48 price target. “CIT is a top lender to mid-market and small businesses, and has excess capital,” Morgan Stanley writes. “We are on the sidelines due to uncertainty on: 1) its ability to fund consistently profitable growth until high-coupon, highly restrictive Series A debt is replaced with cheaper, less restrictive funding; and 2) when it can manage capital more efficiently (18.7% Common Tier 1 currently).” CIT Group Inc. currently trades at $47.38.