Jefferies and Company Positive On State Street (STT)

Jefferies and Company previews State Street STT upcoming Analyst/Investor Day and remains positive on the company. The report notes, “With STT no longer guiding on annual EPS, we expect granularity on margin, costs, business wins, and capital. The session should be more incremental than groundbreaking. We see STT as best able to make 2011 EPS estimates of the group, even with challenges from margin compression and expense step-ups.” Jefferies and Company is predicting that State Street will “elaborate on the efficiency plan announced in 4Q. Our model bakes in only $20mm of cost saves in 2011, given that most of the ~$600mm benefit bleeds in after 2012.” Jefferies and Company maintains its price target of $55 and its Buy rating. State Street is currently trading slightly lower than Monday's close of $47.21