Bank of New York Mellon is attractive play: Barron's

NEW YORK (Reuters) - Bank of New York Mellon's (BK.N) lack of substantial credit exposure could make it an attractive core holding for investors and its stock should appreciate at a faster pace than its annual earnings growth, Barron's said on Sunday.

The bank, which was created in a merger that closed in July, will benefit from unrivaled technological scale, significant cost-saving opportunities and an energized management team, the financial weekly paper said.

Barron's said BNY Mellon is an attractive play on rising global wealth and the development of securities markets around the world.

BNY Mellon's shares moved from a low around $40 in September to a recent $49, leaving the stock trading around 16 times expected 2008 earnings, a valuation Barron's said does not reflect the company's likely merger efficiencies or long-term prospects.

Barron's said BNY Mellon's stock will appreciate at a somewhat faster clip than its 15 percent annual earnings-growth pace as investors more full appreciate the virtues of BNY Mellon's scale and efficiency initiatives.

(Reporting by Yinka Adegoke; Editing by Steve Orlofsky)