Goldman Sachs Reiterates Buy Rating On STT

State Street Corp. STT remains “our top idea amid the recent pullback,” Goldman Sachs writes. “Following its analyst day, STT underperformed peers by 400 bp and SPX by 700 bp, with FX-related litigation concerns well-discounted in STT's current 9X 2012 P/E, in our view.

“Meanwhile, strength in fee businesses and a slightly steeper yield curve should drive 1Q EPS upside, with dividend reintroduction serving as a further positive catalyst. Our price target is unchanged at $57, offering 29% upside. Key risks: market volatility and FX lawsuits.”

State Street Corp. closed Thursday at $44.16.