UPDATE: Goldman Sachs Upgrades Northern Trust (NTRS) to Buy

March 30, 2022 4:03 AM EDT
Get Alerts NTRS Hot Sheet
Price: $98.57 -0.84%

Rating Summary:
    9 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 12 | Down: 28 | New: 29
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(Updated - March 30, 2022 4:09 AM EDT)

Goldman Sachs analyst Alexander Blostein upgraded Northern Trust (NASDAQ: NTRS) from Neutral to Buy with a price target of $141.00.

The analyst comments "Capital Markets 1Q22 EPS season will be a balancing act between rates-related upside against downside risks from essentially everything. While we see +12% 2022 NII upside vs. consensus on average across our coverage, cash balances and deposit betas will govern sustainability of this upside beyond 2Q/3Q22, favoring Brokers over Trust Banks. Other risks include: (a) lower market levels - Equity and Fixed Income markets are down mid-to-high single digits, with S&P 500 down 6% q/q on a point-to-point basis (Growth -11% q/q, Value -2% q/q), (b) currency headwinds, (c) a sharp decline in I-Banking Activity (Global ECM/DCM/Announced M&A down 35% yoy and 18% qoq), (d) weakening flow picture with $66bn in fixed income outflows ($82bn MF outflows and $16bn inflows in ETFs, per ICI), (e) mixed trading backdrops with Rates/FX/Energy performing well but Credit volumes down -19% yoy within HY and -6% yoy within IG, and (f) slowing retail trading activity. Amid this backdrop we favor (1) cleaner NII stories with fewer potential offsets – LPLA, RJF, and we upgrade NTRS to Buy/downgrade BK to Neutral, while avoiding (1) areas adversely impacted by higher rates and (2) most Traditional asset managers, with TROW and JHG posing particular flow and EPS risks. While we see lower realization outlooks weighing on Alternative Managers’ DE, we see FRE outlooks as largely intact with supportive FRE multiples creating upside to the group broadly (and KKR, CG, OWL in particular)."

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 $119.95 yesterday.

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