UPDATE: Morgan Stanley Upgrades CIT Group On Positive Merger Outlook

In a report released Monday, Morgan Stanley analyst Cheryl Pate upgraded CIT Group CIT from Equal-Weight to Overweight and raised its price target from $46 to $57.

Analysts at Morgan Stanley favor CIT Group's announcement to acquire One West and believes shares have not fully priced in the possibility of improved funding structure and standardized capital base along with the merger.

CIT Group's $57 price target comes from an estimate 2016 EPS multiple of 13.1x.