State Street Announces Restructuring Plan (STT)

Goldman Sachs published its research report on State Street STT after STT announced a restructuring plan that is expected to result in $575-$625 million in annual cost saves by the end of 2014. In a note to investors, Goldman Sachs writes, "We view yesterday's announcement as a positive for the stock aimed to boost the firm's long-term profitability, despite some near-term noise in EPS estimates due to restructuring charges. The majority of the $575-$625 mn in net annual cost saves will not kick in until 2013 mainly due to duplicate expenses; however, we do expect to see a meaningful step up by the end of 2012." STT is trading at $44.52.