As they await regulatory and shareholder approval of their merger deal, Chase Manhattan Corp. and J.P. Morgan & Co. got another bullish evaluation Monday.
In a research report, David Berry, director of research at Keefe, Bruyette & Woods Inc., said the business mix of the combined J.P. Morgan Chase & Co. would bring low- to mid-double-digit earnings growth over time and greater-than-expected cost savings. He rated the combined company as a buy, anticipating a 64% increase in the combined companys stock over time. Chase gained $2.50, or 6.25%, to $42.50. Morgan shares climbed $9.50, or 6.45%, to $156.75 on a generally positive day for financial stocks. The American Banker index of top 50 banks closed up 2.45%; and the index of 225 banks rose 2.85%.