Bank of New York Mellon stock price target raised by KBW to $124 from $120

Published 17/10/2025, 12:44
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Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on Bank of New York Mellon (NYSE:BK) to $124.00 from $120.00 on Friday, while maintaining an Outperform rating on the stock.

The firm noted that BNY Mellon achieved a core return on tangible common equity (ROTCE) of nearly 27% and a core pretax margin of 37% in its latest quarterly results, raising questions about whether future performance could improve further. According to InvestingPro data, the company has demonstrated strong financial health with revenue of $19.27 billion and has maintained dividend payments for 55 consecutive years, reflecting consistent operational excellence.

KBW expressed confidence that BNY Mellon has "continued opportunities" as it implements both its new commercial model and platform operating model, despite the company already benefiting from higher markets, capital markets, and increased client activity.

The research firm identified additional opportunities for BNY Mellon to improve pretax margins in its Investment and Wealth Management segments, suggesting room for "modest margin improvement" alongside potential growth rate enhancements.

KBW highlighted BNY Mellon’s favorable risk profile, noting the bank has "limited credit and rate risk" while maintaining "nearly a 100% payout ratio" to shareholders, factors that contributed to its continued Outperform rating.

In other recent news, Bank of New York Mellon reported its third-quarter 2025 earnings, exceeding analysts’ expectations. The company achieved an earnings per share of $1.91, compared to the forecast of $1.77, reflecting a 7.91% surprise. Revenue also surpassed projections, reaching $5.08 billion against the expected $4.97 billion. These results highlight the company’s strong financial performance in the quarter. Despite the positive earnings report, the company’s stock experienced a decline in pre-market trading. No recent mergers or acquisitions were reported. Analyst upgrades or downgrades have not been mentioned in the recent developments. The focus remains on the company’s impressive earnings and revenue performance.

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