Wells Fargo Starts Northern Trust (NTRS) at Market Perform; Looking Beyond Uncertainty, Use Of Capital Likely

Wells Fargo initiates coverage on Northern Trust (NASDAQ: NTRS) with a Market Perform. PT range $41-$44.

Wells analyst says, "NTRS shares may earn a valuation of $41-44 over the next 12 months, based on a price-to-book value multiple of 1.4-1.5x our year-end 2012 tangible book value estimate of $29. Our estimates are based on (1) historically low interest rates throughout our forecast period, resulting in a compressed net interest margin, fee waivers, and a tight spread on the securities lending business; (2) steady growth in the assets under custody for both the personal financial services and the corporate and institutional services business segments; and (3) a modest return of capital to shareholders in the form of share buybacks and dividend payments."

For an analyst ratings summary and ratings history on Northern Trust click here. For more ratings news on Northern Trust click here.

Shares of Northern Trust closed at $39.24 yesterday.

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