Barclays Maintains an 'Equalweight' on Northern Trust (NTRS); 3Q11 EPS Preview: Costs Now the Focus
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Price: $183.90 +0.76%
Rating Summary:
7 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Northern Trust (NASDAQ: NTRS) price target of $60.00.
Barclays analyst says, "We expect NTRS to report 3Q11 operating EPS of $0.70 versus our prior $0.73 estimate and the $0.69 consensus. The reduction to our EPS estimate reflects the recent decline in market valuations as well as continued NIM pressures from excess liquidity and low rates. We expect these impacts to more than offset what should be a strong performance from its FX business, where volumes are up and volatility has increased (Euro-zone debt saga, U.S. debt downgrade, and global economic concerns). To reflect lower market levels and continued NIM pressures, we lowered our 2011 and 2012 estimates to $2.65 (was $2.70) and $3.10 ($3.20)."
"Northern Trust's results remain challenged by the low rate environment and the tepid pace of the economic recovery. Like other trust banks, it is turning to restructuring its expense base to improve earnings with plans to introduce more formalized targets early next year. Longer-term, we think it's well positioned in several attractive businesses and would highlight its recent new business traction (C&IS: 4Q10 strongest on record with 2Q11 the third strongest; PFS: 1H11 strongest six-month period in history)."
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 $36.71 yesterday.
Barclays analyst says, "We expect NTRS to report 3Q11 operating EPS of $0.70 versus our prior $0.73 estimate and the $0.69 consensus. The reduction to our EPS estimate reflects the recent decline in market valuations as well as continued NIM pressures from excess liquidity and low rates. We expect these impacts to more than offset what should be a strong performance from its FX business, where volumes are up and volatility has increased (Euro-zone debt saga, U.S. debt downgrade, and global economic concerns). To reflect lower market levels and continued NIM pressures, we lowered our 2011 and 2012 estimates to $2.65 (was $2.70) and $3.10 ($3.20)."
"Northern Trust's results remain challenged by the low rate environment and the tepid pace of the economic recovery. Like other trust banks, it is turning to restructuring its expense base to improve earnings with plans to introduce more formalized targets early next year. Longer-term, we think it's well positioned in several attractive businesses and would highlight its recent new business traction (C&IS: 4Q10 strongest on record with 2Q11 the third strongest; PFS: 1H11 strongest six-month period in history)."
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 $36.71 yesterday.
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