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Nomura Securities Maintains a 'Neutral' on State Street (STT); Investor Day Takeaways

February 10, 2012 11:03 AM EST
STT Hot Sheet
Rating Summary:
    7 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Neutral' on State Street (NYSE: STT) price target of $40.00.

Analyst, Glenn Schorr, said, "State Street is focusing on what it can in a tough environment. The firm continues to have well-positioned businesses that we think should continue to produce above-average growth given its product offering and its footprint in higher growing non-US markets (pipelines remain healthy). Unfortunately, the cyclical headwinds in net interest income, FX and sec lending are likely to remain a burden in the near term. While capital is in really good shape, significantly larger capital returns will take time (though STT expects to increase both the dividend and stock buybacks in 2012 and payout more than 60%). STT did lower its long-term ROE target to 12-15% (from 14-17%), though this was expected given higher capital requirements."

For an analyst ratings summary and ratings history on State Street click here. For more ratings news on State Street click here.

Shares of State Street closed at $41.10 yesterday, with a 52 week range of $29.86-$47.80.


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