Jefferies Raises Price Target on Northern Trust (NTRS) to $71 Following 2Q
Jefferies reiterated a Hold rating on Northern Trust (NASDAQ: NTRS), and raised the price target to $71.00 (from $68.00), following the company's 2Q earnings report. Trust fees grew 2.7% Q-Q, helped by $7.5mm of fee waiver recapture. Expenses were higher-than-expected in 2Q, as outside services costs stepped higher with continued pressure from regulatory expenses.
Analyst Ken Usdin commented, "Core fees were helped in 2Q by fee waiver recapture and the acquisition of Aviant, with better 3Q starting points. Core NII is also better, helped by a larger balance sheet. Expenses missed across most lines and are a partial offset. We increase our '16 and '17 EPS ests. to $4.20 and $4.70, respectively. Ex. the benefit of +25bp Dec. '16/Dec. '17 rate hikes, our '17 EPS est. would be ~$4.40."
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Shares of Northern Trust closed at $66.47 yesterday.