Jefferies Raises Price Target on State Street (STT)
Jefferies reported on Monday that it has raised its price target on financial services company, State Street Corporation (STT).
The firm has reiterated a “Buy” rating on STT, and has increased its price target from $65 to $66. This price target suggests a 12% upside from the stock’s current price of $57.57.
Analyst Ken Usdin commented, “as the most equity-sensitive asset manager/custodian with the most FX touch points, STT is advantageously positioned to benefit from higher market levels and rebounding FX proxies. That said, it also faces the largest seasonal expense step-up, which will drag EPS meaningfully lower Q-Q and explains why we are only a penny above consensus. The seasonal expenses are well-advertised, however, and ramping cost saves will make positive operating leverage an easier hurdle to clear in the future. A reasonable multiple (10.7x on 2014), largest capital return, and strongest revenue growth potential make STT our preferred way to play the group.”
State Street shares were mostly flat during premarket trading Monday. The stock has increased 29% in the past year.
The Bottom Line
Shares of State Street Corporation (STT) have a 1.81% yield, based on Friday’s closing price of $57.57.
State Street Corporation (STT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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