Bank of New York upgraded to "buy"

Monday, April 10, 2006 7:18:58 AM ET
Punk Ziegel & Co.

NEW YORK, April 10 (newratings.com) - Analyst Richard X Bove of Punk Ziegel & Co upgrades Bank of New York (BK.NYS) from "market perform" to "buy." The target price has been raised from $35 to $43.

In a research note published this morning, the analyst mentions that the upgrade in the rating is based on the company’s agreement to acquire JP Morgan’s corporate trust unit. Under the terms of the deal, Bank of New York would exchange its retail and middle market banking segments with JP Morgan’s corporate trust division and receive $150 million in cash, the analyst says. The company would receive an additional $50 million if customer retention meets the agreed target, Punk Ziegel & Co adds. The analyst believes that the deal would help Bank of New York raise its secular earnings growth rate and make the company a more attractive acquisition target.