Merrill Gets Positive Feedback from Analysts Following Recent Deals

7/29 - "Oppenheimer's Meredith Whitney notes this would reduce MER's CDOs exposure by $11.1 billion. While MER has significantly diluted existing shareholders, they applaud this purging of assets as an attempt to cut its losses and focus on stabilizing its platform and righting the franchise towards growth. While MER's stock still sells at a premium to book value and is expensive in firm's opinion, they believe the stock is getting closer to fairly valued levels as now the hardest work is behind the company."

"Deutsche Bank notes the move increases shares outstanding by est. 38% and reduces est. run-rate EPS from $4/sh. to $2.80/sh but also eliminates most of the worst vintage CDOs, gets cash up front from monolines (vs. waiting 20-40 yrs.), and keeps book value around $22/share. DB is lowering their price target from $31 to $28 but keeping their Hold rating given...