Barclays Maintains an 'Equalweight' on Northern Trust (NTRS); 2Q11 EPS Review: Another Expense Savings Initiative in the Works

Barclays maintains an 'Equalweight' on Northern Trust (NASDAQ: NTRS), price target cut to $60 from $65.

Barclays analyst says, "Bottom line: After missing consensus estimates in each of the last three quarters, Northern Trust reported stronger-than-expected core 2Q11 EPS results. Still, its results remain challenged by the low interest rate environment (fee waivers and margin pressures) and the tepid pace of the economic recovery. Like other trust banks, it now seems to be turning to a possible restructuring of its expense base to improve earnings during this difficult business climate. However, with these top-line headwinds now present for several years, we question how much room remains for it to continue wringing out expense savings..."

"Following its reported 2Q11 EPS "miss" (core beat), we are lowering our 2011 EPS estimate to $2.70 from $2.75. Our 2012 EPS estimate also falls to $3.20
from $3.25 reflecting the challenging environment its pending expense announcement hopes to address."

For more ratings news on Northern Trust click here and for the rating history of Northern Trust click here.

Shares of Northern Trust closed at $44.19 yesterday.

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