Shares of Chase Manhattan Corp. rose 3.8% Tuesday in a mixed market for bank shares after Merril Lynch upgraded the stock, saying the company has hidden earnings potential.

The stock jumped nearly $2 in early trading after Judah S. Kraushaar of Merrill upgraded his short-term forecast to "buy" from "accumulate." They closed up $3.0625, at $83.75. Chase shares "suddenly seem in the midst of a powerful revaluation driven by the new disclosures regarding the extent and composition of the company's private equity and Internet divisions," Mr. Kraushaar said.

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