Barclays Maintains an 'Overweight' on Bank of New York Mellon (BK); 3Q11 EPS Preview: New CEO, Same Issues
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Price: $137.16 --0%
Rating Summary:
19 Buy, 9 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
19 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Bank of New York Mellon (NYSE: BK) price target of $35.00.
Barclays analyst says, "We expect BK to report 3Q11 operating EPS of $0.54 versus our prior $0.57 estimate and the $0.53 consensus. The reduction to our EPS estimate reflects the decline in equity valuations as well as a $22mn ($0.01) severance charge tied to former Chairman & CEO Bob Kelly's late August resignation. In our opinion, these factors along with continued NIM pressure (excess liquidity and low rates) should more than offset a strong FX performance. To reflect recent market declines and continued NIM pressures, we also lowered our 2011 and 2012 EPS estimates to $2.21 (was $2.27) and $2.45 ($2.50), respectively."
"While we look for its FX business to post strong results (volume and volatility up), we expect the low rate environment and excess liquidity buildup to continue to pressure its NIM and for the recent market declines (S&P 500 -14% and MSCI World -17% in 3Q11) to weigh on its Investment Management and Investment Servicing results. We believe positive y-o-y operating leverage will remain elusive in the near-term."
For more ratings news on Bank of New York Mellon click here and for the rating history of Bank of New York Mellon click here.
Shares of Bank of New York Mellon closed at $18.34 yesterday.
Barclays analyst says, "We expect BK to report 3Q11 operating EPS of $0.54 versus our prior $0.57 estimate and the $0.53 consensus. The reduction to our EPS estimate reflects the decline in equity valuations as well as a $22mn ($0.01) severance charge tied to former Chairman & CEO Bob Kelly's late August resignation. In our opinion, these factors along with continued NIM pressure (excess liquidity and low rates) should more than offset a strong FX performance. To reflect recent market declines and continued NIM pressures, we also lowered our 2011 and 2012 EPS estimates to $2.21 (was $2.27) and $2.45 ($2.50), respectively."
"While we look for its FX business to post strong results (volume and volatility up), we expect the low rate environment and excess liquidity buildup to continue to pressure its NIM and for the recent market declines (S&P 500 -14% and MSCI World -17% in 3Q11) to weigh on its Investment Management and Investment Servicing results. We believe positive y-o-y operating leverage will remain elusive in the near-term."
For more ratings news on Bank of New York Mellon click here and for the rating history of Bank of New York Mellon click here.
Shares of Bank of New York Mellon closed at $18.34 yesterday.
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