Nomura Securities Maintains a 'Neutral' on Bank of New York Mellon (BK); Facing $900 Million IRS Case

Nomura Securities maintains a 'Neutral' on Bank of New York Mellon (NYSE: BK) price target of $26.00.

Analyst, Glenn Schorr, said, "BK disclosed in its recently filed 10-Q that there is an ongoing petition with the U.S. Tax Court (trial began in April) challenging the IRS’ disallowance of certain foreign tax credits “FTCs” (~approximately $900 million). HP (NYSE: HPQ) recently announced that it lost its case with the IRS related to $190 million in tax refunds tied to a Dutch tax shelter designed by AIG. We note that if BK has to pay the full $850 mm, it would reduce its Basel III tier 1 common ratio by ~50 bps to 7.1%."

For an analyst ratings summary and ratings history on Bank of New York Mellon click here. For more ratings news on Bank of New York Mellon click here.

Shares of Bank of New York Mellon closed at $20.24 yesterday.

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