Morgan Stanley Starts Lehman Brothers (LEH) and Goldman Sachs (GS) at Overweight

July 1, 2008 7:01 AM EDT

Morgan Stanley set coverage on Lehman Brothers (NYSE: LEH) and Goldman Sachs (NYSE: GS) with Overweight ratings.

The firm has a $31 price target on Lehman, saying risk of writedowns is balanced by solid liquidity and capital footing.

Lehman hit a 8-year low yesterday on rumors the company could agree to a take-under.

The firm has a $205 price target on Goldman, saying the i-bank should retain its premium valuation to peers due to its higher return on equity.

The firm set coverage on Merrill Lynch (NYSE: MER) with an Equal Weight rating, citing more writedowns and possible asset sales to raise capital.


Related Categories

New Coverage
Rumors

Stocks Mentioned

GS 88.80

-12.55 -12.38%
Volume: 71,343,775
Track GS

LEH 0.13

+0.00 +0.00%
Volume: 0
Track LEH

MER 15.75

+2.43 +18.24%
Volume: 78,860,985
Track MER


Related Entities


Add Your Comment