UPDATE: Credit Suisse Downgrades Northern Trust to Underperform on Valuation
Credit Suisse reduced its rating on Northern Trust (NASDAQ: NTRS) from Neutral to Underperform.
Credit Suisse said, "This is largely a valuation call-NTRS shares are up 22% YTD, representing one of the best performing stocks in our coverage. Our current estimates are 5-6% below consensus given a more tepid revenue outlook (Fed on hold until at least 2016, limited client re- risking) and more conservative capital return philosophy compared to other well-capitalized U.S. peers. Absent a material expansion in our EPS/return forecasts, we believe Northern's premium valuation will converge to peers."
Northern Trust closed at $48.52 on Tuesday.
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