UPDATE: Morgan Stanley Reiterates Overweight Rating, Removes PT on Sherwin-Williams Company on Tentative Lead Paint Ruling

In a report published Tuesday, Morgan Stanley analyst Charles A. Dan reiterates Overweight rating on Sherwin-Williams Company (NYSE: SHW), but removed the $221.00 price target.In the report, Morgan Stanley noted, “Judge James Kleinberg issued a tentative ruling in the County of Santa Clara vs. Atlantic Richfield Co., determining that Sherwin-Williams and two other named parties are liable for public nuisance claims related to lead paint in nine California counties. The judge ordered the established of a $1.1 billion fund to be used for the remediation of interior surfaces of specified properties over a 4 year period (unused funds will revert to the defendants), and he outlined a two-step process (inspection + remediation) for disbursement of the funds, with proportional limits for the amounts each country can use. The judge also ruled that defendants should pay the state's legal costs. The judgment was entered ‘jointly and severally', which theoretically means that one party could end up paying more than its ‘fair share' of the liabilities initially, and would then have to recoup funds from the remaining parties.”Sherwin-Williams Company closed on Monday at $177.31.