Merrill: A Little Early for Optimism?

Maybe, says UBS as it upgrades the shares. But the firm thinks investors have factored Merrill's subprime exposure into its stock price

On Aug. 3, Bear Stearns' pronouncement that conditions in the debt markets are the worst it had seen in 22 years sent financial stocks into another tailspin. Just three days later, UBS Investment Research upgraded Merrill Lynch (MER), one of the largest investment banks, to buy from neutral, citing an attractive 12-month risk/reward scenario for the stock.

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