Morgan Stanley Sees Limited Upside For State Street Corporation

In a report published Monday, Morgan Stanley analyst Betsy L. Graseck reiterated an Underweight rating and $81.00 price target on

. In the report, Morgan Stanley noted, “We see 13% upside to current share price, but are Underweight as we see more attractive opportunities elsewhere in the LC bank space. Drivers to get more positive on the stock are dropping greater cost saves to the bottom line, accelerating AUC(A)/AUM wins, rising short-term rates. STT should be of interest to yield investors as its dividend yield is 1.6%, and net yield including stock buybacks is 6.3%.” State Street Corporation closed on Friday at $71.88.