Barclays Maintains an 'Overweight' on Bank of New York Mellon (BK); Positive Operating Leverage May Need to Wait
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Price: $57.50 +0.10%
Rating Summary:
14 Buy, 10 Hold, 0 Sell
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Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Rating Summary:
14 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
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Barclays maintains an 'Overweight' on Bank of New York Mellon (NYSE: BK), PT $35.
Barclays analyst says, "BK's results, although largely in line from an earnings perspective, highlighted the continued adverse impact the low rate environment is having on its net interest margin. In 2Q11, this trend was compounded by strong customer deposit inflows (helps NII but hurts NIM). Beyond the low rate environment, BK has demonstrated a persistent lack of operating leverage owing to rising expenses associated with higher regulatory, integration, and legal costs. Still, it looks like we will need to wait for its 4Q11 Investor Day to hear more about its cost saving opportunities...Reflecting a lower NIM (though partially offset by larger footings) and higher expenses, we are lowering our 2011 estimate by $0.03 to $2.27. We are reducing our 2012 estimate by $0.30 to $2.50."
For more ratings news on Bank of New York Mellon click here and for the rating history of Bank of New York Mellon click here.
Shares of Bank of New York Mellon closed at $24.73 yesterday.
Barclays analyst says, "BK's results, although largely in line from an earnings perspective, highlighted the continued adverse impact the low rate environment is having on its net interest margin. In 2Q11, this trend was compounded by strong customer deposit inflows (helps NII but hurts NIM). Beyond the low rate environment, BK has demonstrated a persistent lack of operating leverage owing to rising expenses associated with higher regulatory, integration, and legal costs. Still, it looks like we will need to wait for its 4Q11 Investor Day to hear more about its cost saving opportunities...Reflecting a lower NIM (though partially offset by larger footings) and higher expenses, we are lowering our 2011 estimate by $0.03 to $2.27. We are reducing our 2012 estimate by $0.30 to $2.50."
For more ratings news on Bank of New York Mellon click here and for the rating history of Bank of New York Mellon click here.
Shares of Bank of New York Mellon closed at $24.73 yesterday.
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