State Street (STT) PT Raised to $135 at KBW; 'Revenues Drive Y/Y Operating Leverage'

Keefe, Bruyette & Woods analyst David Konrad raised the price target on State Street (NYSE: STT) to $135.00 (from $132.00) while maintaining an Outperform rating.

The analyst commented: "Revenues Drive Y/Y Operating Leverage; It was a strong revenue beat from STT driven by a $0.21 better than expected fees. Although FX contributed to more than half of the beat, STT posted 7% Y/Y growth in servicing revenues as well as record management fees. NII missed by $0.03 owing to a smaller balance sheet from a seasonal decline in deposits, but we expect increasing trends going forward with back book repricing and run-off of terminated swap amortization. Despite the strong revenue beat, we do not expect material changes in consensus. However, we find the stock attractive trading below 10x our 2026E and high-teens ROTCE."

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