State Street Analysts Increase Their Forecasts After Strong Earnings

State Street Corporation STT reported better-than-expected second-quarter results on Tuesday.

The company posted quarterly revenues of $3.191 billion, an increase of 2.6% year over year and beating the consensus of $3.146 billion. EPS of $2.15 topped the consensus estimate of $2.03, according to data from Benzinga Pro.

Net interest income increased 6% year-over-year to $735 million, primarily due to higher investment securities yields and loan growth, partially offset by a shift in deposit mix. Investment Management AUM increased 16% Y/Y to $4.4 trillion as of quarter-end, primarily due to higher quarter-end market levels.

"Productivity improvement remains a fundamental component of our strategic agenda. In 2Q, we completed the consolidation of our final operations joint venture in India, which will further enable the transformation of our operating model, unlock efficiency savings, and improve client experience," commented Ron O'Hanley, Chairman and Chief Executive Officer.

State Street shares fell 0.4% to trade at $84.50 on Wednesday.

These analysts made changes to their price targets on State Street after the company released quarterly results.

• B of A Securities analyst Ebrahim Poonawala maintained State Street with an Underperform rating and raised the price target from $85 to $96.
• RBC Capital analyst Gerard Cassidy maintained the stock with a Sector Perform rating, while increasing the price target from $85 to $91.
• Evercore ISI Group analyst Glenn Schorr maintained State Street with an Outperform rating, while raising the price target from $88 to $91.
• Deutsche Bank analyst Brian Bedell maintained the stock with a Hold rating and boosted the price target from $75 to $80.
• Barclays analyst Jason Goldberg maintained State Street with an Overweight rating and raised the price target from $102 to $103.
• Goldman Sachs analyst Alexander Blostein maintained the stock with a Buy rating, while increasing the price target from $89 to $98.
• Morgan Stanley analyst Connor Lynagh maintained State Street with an Equal-Weight rating, while raising the price target from $90 to $93.

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