Merrill Lynch upgraded Lehman Brothers (LEH) to buy from neutral.
Analyst Guy Moszkowski says the stock is trading at 37% relative price-to-book vs. S&P 500, it's currently at the low-end of its near term trading range over past 2-1/2 years of 33% to 48%. He believes stock has sold off considerably from its recent high on concerns about sharp increase in long term bond rates, and the potential for this to affect its trading earnings. However, he thinks the concerns and sell off are overdone.
Moszkoswki initiates a $75 price target, indicating a 23% potential upside for Lehman shares.