UPDATE: Evercore Partners Cuts Target to $38 on Northern Trust

Evercore Partners reiterates its Underweight rating on Northern Trust NTRS and lowers its price target to $38 from $40 as it reduces estimates for trust banks in light of FOMC meeting indicating Fed hold through 2014. Evercore Partners notes, "Prolonged low rate environment a negative for all trust banks due to sec portfolio reinvestment risk and MMKT fee waivers. Given our new interest rate assumptions, we expect such headwinds will extend beyond our previous expectations. NTRS has the highest relative contribution from spread income at 27% of revenue (vs BK 21% and STT at 24%), and is materially impacted from MMKT fee waivers at $0.36/shr annually (vs BK $0.23/shr, and STT $0.05/shr)." NTRS closed at $44.09 a share on Friday.