Boston, MA 09/24/2014 (wallstreetpr) – Financial holding company, State Street Corporation (NYSE:STT) shares price target has been revised upwards by investment advisor S&P Capital IQ on valuation. However, it has trimmed its current year earnings per share estimations.
Boosts Price Tag
The brokerage’s analyst Erik Oja has lifted his one-year price target on the shares of State Street to $81 from $75 projected by him earlier. The revised price target was based on 16.8X its forward four quarter earnings estimation of $4.83 a share and above the company’s 14.1X average forward multiple in the last one year period besides its closest peer trades at.
Analyst Oja expects expenses to moderate and assets to rise strongly. Therefore, he has slashed his earnings estimations for the current year by ten cents a share to $4.86 a share from $4.96 a share on interest rates. He has also reduced his earnings estimations for the next year to $5.25 a share from $5.67 a share primarily on lower interest rates.
S&P Capital IQ believes that State Street Corporation (NYSE:STT)’s asset servicing and asset management franchises were strong and should be able to gain as the trends recover. Therefore, the brokerage has maintained its recommendation of Buy Rating on the shares of State Street Corporation.
Other Brokerages
Citigroup Inc (NYSE:C) has initiated coverage on State Street Corporation (NYSE:STT) shares with a Buy rating and kept a price tag of $90.00 on September 24, Benzinga reported. About ten days back, another brokerage, Rafferty Capital has upgraded the company’s shares to buy from Hold rating. On September 11, Deutsche Bank has maintained its rating of Hold on the shares of State Street and kept a price objective of $77.00.
Expectations
State Street Corporation (NYSE:STT) is likely to announce its third quarter financial results on October 17. Wall Street analysts’ are expecting the company to earn $1.20 a share on revenues of $2.61 billion.
Similarly, for the full year, Street analysts’ estimate the company to deliver earnings of $4.81 a share on revenues of $10.43 billion.
