Goldman Sachs Maintains Buy on State Street (STT)

Goldman Sachs is out with its report today on State Street STT, maintaining Buy. In a note to clients, Goldman Sachs writes, "Investor sentiment around the trust banks remains fairly negative amid no growth in rate-sensitive fees in the near term and an unclear growth profile in the ancillary businesses longer term, a lack of positive operating leverage, and negative headlines with respect to FX litigations. That said, we believe lots of these risks are already reflected in the currently depressed valuations (11.5X 2012E P/E on average) and we see STT as the best value play in the group at below 10X 2012E P/E." Goldman Sachs has a $56 PT on STT. Shares of STT closed Wednesday at $46.37, up 1.27% from Tuesday's close.