Jefferies on Trust Bank Tallies: EPS Basing, But 1Q Expense Hurdles to Clear
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Price: $184.65 +1.17%
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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Jefferies on Trust Bank Tallies: EPS Basing, But 1Q Expense Hurdles to Clear
Analyst, Ken Usdin, said, "Given the 9% rise in equity markets YTD, we revise our EPS forecasts to reflect stronger core business revenues. While higher market levels carry through positively for 2013 estimates, the near-term impact is relatively muted given softer volume-related proxies. For 1Q12, we are inline for Northern Trust (Nasdaq: NTRS), a couple pennies below consensus on Bank of NY (NYSE: BK) and $0.07 below the Street on State Street (NYSE: STT), which is facing a seasonally-high expense quarter."
Other highlighted points include: 1) FX and securities lending proxies suggest a weaker 1Q; 2) Low rate environment continues to drag on revenues; 3) NTRS sets up best for 1Q12; STT has a big expense step-up.
Usdin also said, "Market boost adds to 2013 EPS estimates for all three. Marking the entire group to market adds to 2013 EPS estimates. BK moves up a nickel to $2.45, NTRS is up a nickel to $3.55, and STT shifts up a dime to $4.70. Accordingly, our TP for BK goes to $23, and that for NTRS goes to $45."
Jefferies maintains a Hold on all three bank stocks
Analyst, Ken Usdin, said, "Given the 9% rise in equity markets YTD, we revise our EPS forecasts to reflect stronger core business revenues. While higher market levels carry through positively for 2013 estimates, the near-term impact is relatively muted given softer volume-related proxies. For 1Q12, we are inline for Northern Trust (Nasdaq: NTRS), a couple pennies below consensus on Bank of NY (NYSE: BK) and $0.07 below the Street on State Street (NYSE: STT), which is facing a seasonally-high expense quarter."
Other highlighted points include: 1) FX and securities lending proxies suggest a weaker 1Q; 2) Low rate environment continues to drag on revenues; 3) NTRS sets up best for 1Q12; STT has a big expense step-up.
Usdin also said, "Market boost adds to 2013 EPS estimates for all three. Marking the entire group to market adds to 2013 EPS estimates. BK moves up a nickel to $2.45, NTRS is up a nickel to $3.55, and STT shifts up a dime to $4.70. Accordingly, our TP for BK goes to $23, and that for NTRS goes to $45."
Jefferies maintains a Hold on all three bank stocks
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