UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on First Republic Bank on Loan Growth, Expense Cut Upside

In a report published Thursday, Morgan Stanley analyst Ken A. Zerbe reiterated an Overweight rating on

, and raised the price target from $51.00 to $55.00. In the report, Morgan Stanley noted, “Our analysis suggests that the market is underestimating First Republic's ability to grow loans and cut expenses, while still satisfying its self-imposed limitation on when it crosses $50 bil in assets. Raising estimates and PT and we see sizable upside to consensus EPS.” First Republic Bank closed on Wednesday at $48.16.