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Do the math and Merrill Lynch and Company Inc.(MER) is worth $40 per share, which is well above its current market value, says Citigroup Global Markets analyst Prashant A. Bhatia. 

In a brief note to clients, Mr. Bhatia said:

We estimate that Merrill's BlackRock stake is worth $9 per share, its wealth management franchise is worth $16 per share, and the tangible equity in its institutional franchise is currently $15 per share (assuming $24b of the firm's $30b in tangible common equity is allocated to this division), totaling $40 per share in value.

He added that Merrill has ample funding sources, with over $90-billion in liquidity and a $100-billion customer deposit franchise.

The analyst reiterated his "buy" rating and left his $45 price target unchanged. 

Source: What's Merrill Lynch Worth?