UPDATE: Jefferies Reiterates Hold Rating, Raises PT on Northern Trust Corporation on Estimate Change

In a report published Friday, Jefferies analyst Ken Usdin reiterated a Hold rating on Northern Trust Corporation NTRS, and raised the price target from $51.00 to $53.00. In the report, Usdin noted, “Our estimate is a penny below 4Q12, as a normalized tax rate (33% vs. 25% last quarter), negates modest revenue growth and expense leverage, which puts us $0.04 below consensus. Core business lines should rise sequentially on the back of new business wins, client re-risking, and loan repricing initiatives, but negative lagged comps will keep revenue growth in check. Expenses remain a wildcard given potential for lumpy implementation outlays relating to large, complex mandates. Eventually these costs will fade and, with more cost saves on the come from Driving Performance, we do expect expense leverage, but are hesitant to bake-in much given seasonal expense pressures (FICA, retirement-eligible options, NTRS Open).” Northern Trust Corporation closed on Thursday at $54.34.