Stifel, Nicolaus & Co. Inc. initiated coverage of Marshall & Ilsley Corp.'s stock with a "buy" rating and called Metavante Corp. the Milwaukee banking company's growth engine.
Metavante's earnings have grown from 10% of M&I's profits in 2002 to 20% last year. That percentage is expected to rise to 24% by next year, Anthony R. Davis, a Stifel, Nicolaus analyst, wrote in a research note issued Thursday.
M&I has allocated $2 billion to Metavante, and the money could be used for acquisitions or other purposes, he wrote.
Metavante has an "extremely broad product set," which includes merchant, credit, debit, automated teller machine, automated clearing house processing, health savings accounts, and check image exchange, among other services, Mr. Davis wrote.
The investment banking company is initiating coverage under its new name, which resulted from Wednesday's acquisition of Ryan Beck Holdings Inc. by Stifel Financial Corp.
