Bank of America Merrill Lynch Maintains Buy on Stewart Enterprises

Bank of America Merrill Lynch is out with its report today on Stewart Enterprises STEI, maintaining Buy. In a note to clients, Bank of America Merrill Lynch writes, "STEI shares are off 16% from a high in April (vs. -3% S&P 500), in sympathy with weaker financial services stocks and on thoughts a sale of the company may be delayed, given a recent investment by a larger competitor elsewhere. Still, we believe STEI is executing well fundamentally, with continued growth in pre-need sales; improving revenues per event, particularly for cremations; solid trust returns; and capital structure initiatives that assure more of the cash that it generates can be deployed accretively. It remains our top small cap idea." Shares of STEI closed Wednesday at $6.83, down 1.59% from Tuesday's close.