Morgan Stanley Maintains Underweight on State Street Corporation

Morgan Stanley reiterates its Underweight rating on State Street Corporation (NYSE: STT) as estimates should decline on broad-based top-line miss.

Morgan Stanley says, "STT posted core operating EPS (ex securities gain) of $0.87, -8c below our estimate and -6c vs. consensus. Miss driven by weaker top-line across the board, partly offset by tighter expense management. Core revenue (ex gains) was -8% lighter than we expected, driven by lower AUC/AUM, securities lending, and fx trading vs. our estimate. Estimates likely to decline as a result."

STT closed at $42.75 per share on Tuesday.