Broker Stocks Get Upgraded

An analyst says Wall Street advisory work remains strong.
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Broker stocks got a lift Tuesday from an analyst upgrade.

Shares of

Bear Stearns

(BSC)

rose $1.06 to $155.82,

Goldman Sachs

(GS) - Get Report

rose $1.67, to $199.12,

Lehman Brothers

(LEH)

rose 56 cents to $76.67,

Merrill Lynch

(MER)

rose 33 cents to $91.18, while

Morgan Stanley

(MS) - Get Report

rose 27 cents, to $79.58.

Analyst Dick Bove of Punk Ziegel raised his ratings on each of those firms to accumulate from market perform.

Bove, in a research note, attributes the rosier outlook to a continuing strong environment for corporate dealmaking and a robust stock market, which has fueled demand for IPOs. He also says a surge in private-equity-sponsored buyouts is fueling advisory work and capital markets activity at the big investment banks.

Bove also raised full-year earnings estimates for three investment firms, Bear Stearns, Goldman Sachs and Morgan Stanley, whose fiscal years end on Nov. 30.