Morgan Stanley reiterated an Equal Weight rating and $74 price target on Jefferies Financial (JEF). The firm said it caught up with Jefferies management following the 8K on the company’s exposure to First Brands, with the firm calculating a maximum potential loss of $44.6M, lower than the $161M reported by the media. That $44.6M figure would represent a 0.5% hit to Jefferies’ tangible shareholders’ equity as of Q3, which Morgan Stanley views as manageable, the analyst tells investors in a research note.
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