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.


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GS 29.82

-117.50 -79.76%
Volume: 440,937
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LEH 0.13

+0.00 +0.00%
Volume: 0
Track LEH

MER 11.64

+0.00 +0.00%
Volume: 49,928,111
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