Nomura Securities Maintains a 'Neutral' on State Street (STT); Strong Core Trends, But Issues Remain
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Price: $191.74 +1.00%
Rating Summary:
15 Buy, 14 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 14 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on State Street (NYSE: STT) price target of $50.00.
Analyst, Glenn Schorr, said, "Pretty good core trends, though some seasonal comp issues and deposit outflows diluted the story in 1Q – should get better from here. Core business trends were good with AUC up over 7% q/q and new business wins were solid ($233bn in asset servicing, $41bn in asset mgmt). On the negative side, the runup in deposits reversed in the quarter (-17% q/q) as the markets thawed, but that did help push the NIM 12 bps higher. Operating leverage was negative year on year, though this issue should reverse next quarter. Put it together, we think STT did a decent job (still just an 8.8% ROE) and the earnings outlook should improve as 1Q seasonal comp issues subside, the company earns off its higher AUM/AUC levels, and STT starts to put its $1.8bn in stock repurchases to work."
For an analyst ratings summary and ratings history on State Street click here. For more ratings news on State Street click here.
Shares of State Street closed at $43.68 yesterday.
Analyst, Glenn Schorr, said, "Pretty good core trends, though some seasonal comp issues and deposit outflows diluted the story in 1Q – should get better from here. Core business trends were good with AUC up over 7% q/q and new business wins were solid ($233bn in asset servicing, $41bn in asset mgmt). On the negative side, the runup in deposits reversed in the quarter (-17% q/q) as the markets thawed, but that did help push the NIM 12 bps higher. Operating leverage was negative year on year, though this issue should reverse next quarter. Put it together, we think STT did a decent job (still just an 8.8% ROE) and the earnings outlook should improve as 1Q seasonal comp issues subside, the company earns off its higher AUM/AUC levels, and STT starts to put its $1.8bn in stock repurchases to work."
For an analyst ratings summary and ratings history on State Street click here. For more ratings news on State Street click here.
Shares of State Street closed at $43.68 yesterday.
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