This is just out from SG US rsch team. Strange timing given how far it has
fallen and only looking at 16% downside to our TGT, but FYI.
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We downgrade Merrill Lynch to Sell and add it to our Conviction Sell List with
a $22 six month price target (16% downside).Merrill currently trades
at the highest price to book multiple in our large cap brokerage universe,
despite having some of the most significant exposures to troubled assets
such as CDOs, mortgages and leveraged loans.**Note attached**
(1) Very weak 3Q2008 results from the investment banks as well as other
financial services companies over the next two months should continue to
pressure our sector.
(2) Further deterioration in the credit markets, particularly in the mortgage
markets, may result in additional write-downs in upcoming quarters.
(3) Dislocations across many of the financial markets as well as additional
