UPDATE: Morgan Stanley Reiterates on Citigroup Following RMBS Settlement

In a report published Tuesday, Morgan Stanley analyst Betsy L. Graseck reiterated an Overweight rating on

, but removed the $60.00 price target. In the report, Morgan Stanley noted, “No impact to our EPS estimate post Citi's announced $1.125b RMBS settlement with institutional investors. Citi is about 90% reserved for the settlement and we expect an incremental $100m legal reserve build for this settlement in 1q, which is more than covered by our $850m legal reserve build estimate. All-in, settlement largely in line with expectations.” Citigroup closed on Monday at $46.55.