UPDATE: Morgan Stanley Downgrades CIT Group to Equal-Weight on Fewer Catalysts Outstanding

Morgan Stanley downgraded CIT Group

from Overweight to Equal-weight and maintained a $46.00 price target. Morgan Stanley said, "Risk-reward skew looks more balanced; we see fewer NT catalysts to drive CIT meaningfully higher. CIT shares are up 18% from lows post 3Q12 earnings as the company has achieved several key milestones to achieving their long-term targets, most importantly the elimination of more than $15B of high-cost debt and growing deposits to 31% of funding. Next catalysts for the stock include approval of CIT's capital plan, removal of the written agreement, and potential acquisitions (as indicated by mangement)." CIT Group closed at $42.71 on Wednesday.