Nomura Securities Maintains a 'Neutral' on State Street (STT); Q3 Review

Nomura Securities maintains a 'Neutral' on State Street (NYSE: STT) price target of $41.00.

Nomura analyst, Glenn Schorr, said, ""Operating EPS of $0.96 beat our $0.88 estimate. These were fairly good results given the market volatility and macroeconomic concerns. While many banks suffered weak results, STT’s operating revenue grew 12% y/y, fee-based revenue fell only 3% q/q, expenses were well controlled, and total deposits grew 8% q/q. An 11% ROE is not too exciting, but we thought STT did a solid job in a tough environment. We raised our 2011E EPS from $3.62 to $3.78, 2012E from $3.70 to $3.77, and 2013E from $4.25 to $4.42. We believe STT is reasonably valued at 10x our 2012 EPS estimate but remain Neutral on limited upside implied by our $41 TP."

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 $37.49 yesterday.

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