Nomura Securities Maintains a 'Neutral' on State Street (STT) After Meeting with Management

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

Analyst, Glenn Schorr, said, "STT is controlling what it can on the expense, capital return and new business fronts, but the current revenue environment remains tough for sec lending, FX, and NII. While the expense initiatives and the roll off of ~$100mm of 1Q’s retirement eligible grants and seasonal comp costs, along with 2Q’s dividend arb season should help the P&L, we think hitting management’s goal of a 100 bps improvement in the comp ratio will be challenging excluding a good second-half bounce. We think STT is fairly valued at 11x our 2013 EPS estimate, and remain Neutral."

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 $41.10 yesterday.

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