UPDATE: Credit Suisse Downgrades Northern Trust to Underperform on Valuation

Credit Suisse reduced its rating on Northern Trust

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.