Fri Sep 5, 5:43 AM ET (Reuters) - Merrill Lynch & Co (MER.N), battered by more than $40 billion of write-downs tied largely to mortgages, will likely incur fresh write-downs, in addition to those assumed after its recent sale of repackaged debt to Lone Star Funds, said an analyst at Goldman Sachs, who cut the stock to a "sell."Analyst William Tanona also widened his third-quarter loss forecast for the world's largest brokerage, while adding the stock to his Americas conviction sell list.
Tanona said Merrill's stock currently trades at the highest price to book multiple in his large-cap brokerage universe, despite having some of the most significant exposures to troubled assets like collateralized debt obligations, mortgages and leveraged loans.
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