Goldman Sachs Downgrades Bank of New York to a “Sell” (BK)
Goldman Sachs announced on Monday that they have downgraded financial services company, The Bank of New York Mellon Corporation(BK) to a “Sell.”
The firm has lowered its rating on BK from “Neutral” to “Sell,” and has given the company a price target of $22. This price target suggests a -19% decline from the stock’s current price of $27.29.
A Goldman Sachs analysts commented, “while we continue to view BK as a leading global asset servicing/management business that is well positioned for the eventual recovery in short-term interest rates, we believe the recent move in 10-year yields has little to no impact on the firm’s near-term earnings power and consensus remains too optimistic on BK’s growth prospects amid challenges in a number of the firm’s high-margin businesses.”
The Bank of New York Mellon shares were mostly flat during premarket trading Monday. The stock price has increased 33% in the past year.
The Bottom Line
Shares of Bank of New York Mellon (BK) have a 1.91% dividend yield, based on Friday’s closing stock price of $27.29. The stock has technical support in the $24-$25 price area. If the shares can firm up, we see overhead resistance around the $28-$30 price levels.
The Bank of New York Mellon Corporation(BK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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