State Street (NYSE: STT) received a number of ratings updates from brokerages and research firms in the last week:
- State Street had its “neutral” rating reaffirmed by analysts at JPMorgan Chase. They now have a $59.00 price target on the stock, up previously from $50.50. They wrote, “We maintain our Neutral rating on State Street relative to its trust bank peers due to its relatively greater risk from decline in market valuations and lower earnings quality with a history of numerous surprise charges in several parts of the company over the past few years. In addition, similar to peers, STT continues to face revenue pressures from low absolute interest rates and declining revenues in volatility driven businesses. We believe STT’s current discount relative to its historical average P/E multiple is warranted with the increased volatility of earnings and lower quality.”
- State Street had its price target raised by analysts at ISI Group to $64.00. They wrote, “Post STT’s Investor Day, we are more constructive on STT’s ability to beat Consensus longer-term vs. a cautious mgmt outlook. Key drivers are: 1) mgmt’s cost save program is on track to deliver over 400bps op margin improvement by 2015, which under conservative revenue growth would drive 10%+ upside to Consensus in 2015, 2) macro backdrop remains materially better than mgmt 2013 outlook & could drive revenue upside, 3) STT is improving upon a leadership position in asset servicing that should enhance its longerterm position & contribute positively to core service fee growth.”
- State Street had its “buy” rating reaffirmed by analysts at TheStreet. They wrote, “State Street (STT) has been reiterated by TheStreet Ratings as a buy with a ratings score of A- . The company’s strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.”
- State Street had its “outperform” rating reaffirmed by analysts at RBC Capital. They now have a $58.00 price target on the stock.
- State Street had its “buy” rating reaffirmed by analysts at Jefferies Group. They now have a $65.00 price target on the stock.
State Street Co. opened at 58.66 on Thursday. State Street Co. has a 1-year low of $38.95 and a 1-year high of $59.23. The stock’s 50-day moving average is currently $56.07. The company has a market cap of $26.801 billion and a price-to-earnings ratio of 13.97.
State Street Corporation (State Street) is a financial holding company. Through its subsidiaries, including its principal banking subsidiary, State Street Bank and Trust Company (State Street Bank), the Company provides a range of financial products and services to institutional investors worldwide.
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