Nomura Securities Maintains a 'Neutral' on State Street (STT); Q1 Review

Nomura Securities maintains a 'Neutral' on State Street (NYSE: STT) price target of $50.00.

Analyst, Glenn Schorr, said, "1Q12 Operating EPS of $0.84 vs Our/Street Estimates of $0.81/$0.86. Pretty good core trends, although seasonal comp issues, one-time fair value gain and deposit outflows diluted the story in 1Q – should get better from here, we believe. 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. We tweaked our 2012 EPS estimate, but our price target remains $50 (11x our 2013E EPS of $4.55)."

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 $44.55 yesterday.

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