Nomura Securities Bumps PT on Northern Trust (NTRS) Post Q1
Nomura Securities analyst Glenn Schorr raised his price target on Neutral-rated Northern Trust (NASDAQ: NTRS) from $52 to $55 following Q1 results.
Schorr commented: "NTRS reported EPS of $0.67 vs. Our/Street of $0.74/$0.72. Ex-items, still a bit soft 1Q with NIM compression (-2bps q/q) and falling net interest income continues to be a drag on the top line. But NTRS did post positive leverage for 1Q in a tough environment thanks to solid expense control (expenses -2%, revs +1%). Expenses were down 2% q/q in 1Q, and the company is making progress on its expense/revenue initiatives ($55mn pre-tax benefit in 1Q) on its way to $250mn for 2013. NTRS maintained strong capital ratios with T1C ratio (Basel 3, w/ NPR) at 13%, and repurchased ~1.4mn shares (~$74.5mn). The company also received approval for $400mn in repurchases through 1Q13. We don’t see much upside to estimates given the environment. We tweaked our estimates and our TP goes from $52 to $55 (14x our 2014E of $3.90)."
FY 2013 EPS estimates for Northern Trust were trimmed from $3.30 to $3.21; FY 2014 EPS estimates were raised from $3.70 to $3.90.
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 $53.40 yesterday, with a 52 week range of $41.11-$56.66.
Schorr commented: "NTRS reported EPS of $0.67 vs. Our/Street of $0.74/$0.72. Ex-items, still a bit soft 1Q with NIM compression (-2bps q/q) and falling net interest income continues to be a drag on the top line. But NTRS did post positive leverage for 1Q in a tough environment thanks to solid expense control (expenses -2%, revs +1%). Expenses were down 2% q/q in 1Q, and the company is making progress on its expense/revenue initiatives ($55mn pre-tax benefit in 1Q) on its way to $250mn for 2013. NTRS maintained strong capital ratios with T1C ratio (Basel 3, w/ NPR) at 13%, and repurchased ~1.4mn shares (~$74.5mn). The company also received approval for $400mn in repurchases through 1Q13. We don’t see much upside to estimates given the environment. We tweaked our estimates and our TP goes from $52 to $55 (14x our 2014E of $3.90)."
FY 2013 EPS estimates for Northern Trust were trimmed from $3.30 to $3.21; FY 2014 EPS estimates were raised from $3.70 to $3.90.
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 $53.40 yesterday, with a 52 week range of $41.11-$56.66.