UPDATE: Morgan Stanley Reiterates On ITC Holdings Corp. Following Management Meeting

In a report published Thursday, Morgan Stanley analyst Rajeev Lalwani reiterated an Overweight rating on

, and raised the price target from $39.00 to $41.00. In the report, Morgan Stanley noted, “Ahead of a competitor conference ITC hosted a dinner that we believe was supportive of our OW-rating. The key takeaways were: 1) Confidence in ROEs having only modest downside based on recent FERC actions and updated calculations of return ranges; 2) Comfort with well-above peer growth targets laid out at the last analyst day; 3) Expectations for federal policy to remain constructive around transmission build out and return levels,albeit with some uncertainty due to changing leadership;and 4) Openness to considering REIT formation at the right time.” ITC Holdings Corp. closed on Wednesday at $37.35.