(ShareCast News) - Legal & General got a boost on Wednesday as Bank of America Merrill Lynch added the stock to its 'Europe 1' list, which is a list of department-wide top picks."We believe that its steadily growing, highly visible cash generation deserves a premium valuation," said the bank.It said L&G leads the growing market for de-risking defined benefit pension schemes, while its diverse range of low-charge savings products leave it well-placed to cope with regulatory changes.Merrill reiterated its 'buy' rating on the stock and nudged the price target up to 305p from 300p.The bank said catalysts could include the announcement of large bulk annuity transactions, clarity on the company's matching adjustment approval, confirmation of approval of L&G's internal model, and full-year results at which it should give clarity on its solvency 2 capital position and future dividend policy."L&G has a diverse business with cash generation coming from fee-based (asset gathering and management), protection and annuities. We believe that this diversity means that the company is well-placed to cope with changing regulations and consumer preferences, and that its cash generation is relatively robust to market shocks."At 1425 BST, L& G shares were up 2% at 243.50p.