UPDATE: Credit Suisse Downgrades State Street On Valuation Call

In a report published Thursday, Credit Suisse analyst Ashley N. Serrao downgraded the rating on

from Outperform to Neutral, but reiterated the $78.00 price target. In the report, Credit Suisse noted, "Marking to market for the current Fed Funds curve (flatter since our last mark), we reduce our 2015-2018 estimates to $5.13, $5.65, $6.19 and $6.84 (old: $5.14, $5.89, $6.35 and $6.91), respectively, to account for slower NIM expansion and money market fee waiver alleviation. We are now 5-10% below the street. Our target price stands at $78, which implies the firm can trade at 14x our 2016 estimate. We downgrade the stock to Neutral, which is mainly a valuation call: with the stock trading close to our target price, we do not believe that risk/reward is skewed to the upside anymore. Specifically, post yesterday's Investor Day we no longer see differentiated margin expansion prospects (vs. peers) nor any positive catalysts on the horizon to offset negative estimate revisions. We believe there is more to come from finalization of TLAC." State Street closed on Wednesday at $76.91.