Jefferies Reports on State Steet's 3Q EPS Beat

Jefferies & Company has published a research report on State Street STT commenting on the company's 3Q core EPS beat. In the report, Jefferies writes, "STT posted GAAP EPS of $1.10; we calculate operating EPS around $0.92-$0.94 ex. specials, a beat to consensus. Strong results in custody and FX, coupled with decent expense controls, delivered the beat. Negative EPS revision risk remains with the current EPS run-rate 7% below the $0.99 quarterly run-rate implied by 2012 consensus and net interest margin pressure likely to continue, but the stock should be supported by the beat." Jefferies maintains its Hold rating and $38 price target on State Street, which is currently trading up $2.25 from its $33.87 closing price yesterday.