Morgan Stanley Sees Positive Surprise on Expense Management for J.P. Morgan Chase & Co.

In a report published Wednesday, Morgan Stanley analyst Betsy L. Graseck reiterated an Overweight rating and $71.00 price target on

. In the report, Morgan Stanley noted, "We expected JPM to reduce their ROTCE targets from 15-16% to 14% given higher capital requirements following the Fed's GSIFI announcement late last year. Mgmt however outlined plans to get to a 15% ROTCE through a combination of expense cuts and RWA mitigation. Expense cuts in the Commercial and Investment Bank (CIB) and Consumer and Community Bank (CCB) were better than our expectations.We were looking for $1.5B in expense saves in CIB vs. JPM's $2.8B announcement and $1.6B in CCB vs. JPM's $2B." J.P. Morgan Chase & Co. closed on Tuesday at $60.82.