Deutsche Bank Downgrades Northern Trust (NTRS) to Hold

October 19, 2022 4:57 PM EDT
Get Alerts NTRS Hot Sheet
Price: $95.38 --0%

Rating Summary:
    9 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 13 | New: 13
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Deutsche Bank analyst Brian Bedell downgraded Northern Trust (NASDAQ: NTRS) from Buy to Hold with a price target of $80.00 (from $101.00).

The analyst comments "3Q results aside, we view the forward outlook less favorably upon our estimate revisions (detail below), and while we still expect Northern Trust to possess a premium growth rate over time to trust bank peers BNY Mellon (BK-Hold) and State Street (STT-Hold), we no longer see the future growth outlook as being differentiated enough to warrant a substantial valuation premium to BK & STT (see Figures 1, 2 & 4). This said, we think a 5-10% relative P/E premium is warranted but not the 15-20% premium we assigned before this downgrade. Thus, despite the 9% pullback in the stock today, our new PT of $80 (down from $101 prior upon reduced EPS estimate revisions & lower P/E target), implies the shares seem fairly valued at current levels, driving our downgrade from Buy to Hold."

For an analyst ratings summary and ratings history on Northern Trust click here. For more ratings news on Northern Trust click here.

Shares of Northern Trust closed at $87.61 yesterday.

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