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updated 15:42, Wed January 02, 2008

Bank of New York Mellon Downgraded to "Neutral" by Janney Montgomery Scott Analyst

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NEW YORK (AP) -- Bank of New York Mellon was downgraded Monday to "Neutral" from "Buy" by Janney Montgomery Scott LLC based on the stock's current price.

Shares of Bank of New York Mellon rose 26 cents to $48.76 Monday. Janney Montgomery analyst Thomas McCrohan set a price target of $50 per share for Bank of New York Mellon.

Since Bank of New York announced its acquisition of Mellon earlier this year, the stock has made up the valuation gap between it and other asset managers.

McCrohan noted that Bank of New York Mellon is not purely an asset manager, but trades similar to other asset managers, and therefore needs to increase its earnings from asset management before investors should consider buying more shares.

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