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Morgan Stanley Lowers EPS on The Bank of New York Mellon

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In a report published Wednesday, Morgan Stanley analyst Betsy L. Graseck reiterated an Underweight rating and $35.00 price target on The Bank of New York Mellon Corporation (NYSE: BK).

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 closed on Tuesday at $33.75.

Latest Ratings for BK

DateFirmActionFromTo
Sep 2019MaintainsUnderweight
Aug 2019MaintainsHold
Jul 2019MaintainsNeutral

View More Analyst Ratings for BK
View the Latest Analyst Ratings

Posted-In: Betsy L. Graseck Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

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