UPDATE: Morgan Stanley Lowers PT on J.P. Morgan Chase to $56

Morgan Stanley is out with its report today on J.P. Morgan Chase JPM, lowering its PT from $56 to $58. In its report, Morgan Stanley writes, "We are Overweight JPM as we expect it to take share in a tough environment given high liquidity, broad footprint and strong balance sheet. We believe JPM is cheap at 0.7x book as we expect ROE of 12% over the next year+. Our $56 price target is based on residual income valuation, using a normalized beta and cost of equity capital." At the time of posting, shares of JPM were trading at $33.55, up 2.29% from Wednesday's close.