Barclays Maintains an 'Overweight' on State Street (STT); 1Q EPS Review: Outperforms Peers with Continued Revenue
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Price: $183.07 -1.47%
Rating Summary:
15 Buy, 14 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
15 Buy, 14 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Overweight' on State Street (NYSE: STT), PT $57.
Barclays analyst says, "Results came in modestly ahead of expectations, with solid growth in asset management and asset servicing revenues, as well as year-over-year positive operating leverage. This compared particularly favorably to misses at peers Bank of NY (NYSE: BK) and Northern Trust (Nasdaq: NTRS). If STT can continue to sustain positive (absolute & relative) results, we would expect its multiple discount to its historical level to narrow."
"We are increasing our 2011 EPS estimate $0.15 (4%) to $3.75 and
raising our 2012 EPS estimate by $0.10 to $4.20. The primary driver of the revision is a higher net interest margin assumption, aided by the recent ECB rate hikes, in addition to solid new business pipeline. Results could also benefit from continued market strength. Additionally, while FX and securities lending have been under pressure of late, we still expect seasonal improvement in 2Q11."
For more ratings news on State Street click here and for the rating history of State Street click here.
Shares of State Street closed at $45.69 yesterday.
Barclays analyst says, "Results came in modestly ahead of expectations, with solid growth in asset management and asset servicing revenues, as well as year-over-year positive operating leverage. This compared particularly favorably to misses at peers Bank of NY (NYSE: BK) and Northern Trust (Nasdaq: NTRS). If STT can continue to sustain positive (absolute & relative) results, we would expect its multiple discount to its historical level to narrow."
"We are increasing our 2011 EPS estimate $0.15 (4%) to $3.75 and
raising our 2012 EPS estimate by $0.10 to $4.20. The primary driver of the revision is a higher net interest margin assumption, aided by the recent ECB rate hikes, in addition to solid new business pipeline. Results could also benefit from continued market strength. Additionally, while FX and securities lending have been under pressure of late, we still expect seasonal improvement in 2Q11."
For more ratings news on State Street click here and for the rating history of State Street click here.
Shares of State Street closed at $45.69 yesterday.
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