J.P. Morgan Maintains Neutral on State Street (STT)

J.P. Morgan is out with its report on State Street STT maintaining Neutral on STT. In a note to clients, J.P. Morgan writes, "STT posted operating EPS of $0.87 excluding discount accretion and previously announced restructuring charges. However, EPS was about 4 cents below our estimate, excluding benefit from another insurance recovery, which added about 5 cents. Results were weak, in our view, as core net interest margin fell sharply (and is likely to decline further) and core expenses rose sharply, which offset very strong F/X trading revenues and growth in all other fee categories." J.P. Morgan maintains its $52 PT on STT. STT closed yesterday at $47.56.