Goldman Sachs Reiterates Buy on State Street (STT)

Goldman Sachs is out with its report today on State Street STT, reiterating Buy. In a note to clients, Goldman Sachs writes, "Trust banks remain growth-constrained, as, despite a +4% increase in 1Q AUC/A, the group's core pre-tax income was down -0.9%, pushing the overall yield on AUC/A down to 0.35 bp from 1Q10's 0.46 bp. In this environment, we believe STT offers the best near-term earnings growth story at an attractive multiple of 10X 2012E P/E vs. historical 13X over the last five years." Goldman Sachs has a $56 PT on STT. Shares of STT closed Wednesday at $46.02.