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 Lynch writes, "STEI's shares are off 17% since April (vs. -1% S&P 500) in sympathy with weaker capital markets and concerns over the economy, but with cash reserves of $79 million, the company should be adequately financed to drive EPS growth in the absence of higher trust fund returns. The new dividend implies a yield of 2.0%, at the higher end of the spectrum in our research universe and consistent with investor appetite for yield bearing equities. It remains our top small cap idea." Bank of America Merrill Lynch maintains a $10 PO on STEI. Shares of STEI closed Tuesday at $6.89.