Morgan Stanley Lowers EPS on The Bank of New York Mellon Corporation

In a report published Wednesday, Morgan Stanley analyst Betsy L. Graseck reiterated an Underweight rating and $35.00 price target on

. In the report, Morgan Stanley noted, “We see 4% upside potential to our PT and believe BK will underperform the LC Bank group over the next 12 months. We think earnings remain under pressure from low short-end rates. We see more attractive opportunities elsewhere within LC banks with greater upside. Persistently low rates are a drag on NIM, securities lending, and are costing waived management fees on money market funds. BK is fighting top line pressures through client outsourcing wins, moving up the PB food-chain with its collateral management program, and efficiency focus. BK should be of interest to yield investors as its dividend yield is 2.0%, and total yield including stock buybacks is 6.2% (2014 est).” The Bank of New York Mellon Corporation closed on Tuesday at $33.75.