Merrill’s Online Push Appears to Be Clicking

Despite its late start, Merrill Lynch & Co.’s novel online venture appears to be paying off.

The company’s shares rose 7% on Wednesday after two analysts boosted their ratings, citing Tuesday’s fourth-quarter profit report that showed a resurgence in new client deposits at the world’s biggest brokerage.

Merrill rose $6 to close at $87 on the New York Stock Exchange, extending Tuesday’s 7% gain. Wednesday’s rise came after Schroder & Co. analyst James Hanbury and Sanford C. Bernstein Co.’s Steve Galbraith raised their ratings on Merrill shares to “outperform” from “neutral,” noting that Merrill’s online push has boosted revenue.

Merrill attracted $36 billion in fresh deposits in the last quarter of 1999, almost 30% more than it had in the rest of the year. The upswing came as Merrill introduced an online account in December that includes broker advice.