CFRA lifts State Street stock rating, cuts price target to $113

EditorLina Guerrero
Published 17/01/2025, 19:52
CFRA lifts State Street stock rating, cuts price target to $113
STT
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The bank also reported a 19% year-over-year increase in total deposits, driven by a significant rise in interest-bearing deposits, up 37%, and an 18% increase in loans. Assets under custody and administration reached $46.7 trillion, marking an 11% increase from the previous year, while assets under management climbed by 15% to $4.7 trillion.

In 2024, State Street returned $2.2 billion to shareholders, which included $1.3 billion in buybacks and $900 million in dividends, offering a 3% dividend yield. InvestingPro analysis reveals that State Street has maintained dividend payments for 55 consecutive years, with the company receiving a "FAIR" overall Financial Health Score based on comprehensive metrics including profitability, growth, and cash flow indicators.

InvestingPro analysis reveals that State Street has maintained dividend payments for 55 consecutive years, with the company receiving a "FAIR" overall Financial Health Score based on comprehensive metrics including profitability, growth, and cash flow indicators.

The bank also reported a 19% year-over-year increase in total deposits, driven by a significant rise in interest-bearing deposits, up 37%, and an 18% increase in loans. Assets under custody and administration reached $46.7 trillion, marking an 11% increase from the previous year, while assets under management climbed by 15% to $4.7 trillion. In 2024, State Street returned $2.2 billion to shareholders, which included $1.3 billion in buybacks and $900 million in dividends, offering a 3% dividend yield.

InvestingPro analysis reveals that State Street has maintained dividend payments for 55 consecutive years, with the company receiving a "FAIR" overall Financial Health Score based on comprehensive metrics including profitability, growth, and cash flow indicators.

State Street’s guidance for 2025 indicates that net interest income (NII) will remain flat compared to the previous year. However, NII accounted for only 22% of the total net revenues in 2024, with service fee revenue being the largest contributor. The company experienced a 13% year-over-year increase in total non-NII fee revenue. Breakdowns of this growth include servicing fees up by 6%, management fees by 20%, forex trading services by 17%, securities finance by 22%, and software and processing fees by 9%.

The bank also reported a 19% year-over-year increase in total deposits, driven by a significant rise in interest-bearing deposits, up 37%, and an 18% increase in loans. Assets under custody and administration reached $46.7 trillion, marking an 11% increase from the previous year, while assets under management climbed by 15% to $4.7 trillion. In 2024, State Street returned $2.2 billion to shareholders, which included $1.3 billion in buybacks and $900 million in dividends, offering a 3% dividend yield.

In other recent news, State Street Corporation (NYSE:STT) reported a successful fourth quarter, with earnings and revenue surpassing analyst expectations. The financial services company posted adjusted earnings per share of $2.60, exceeding the analyst consensus of $2.36, while revenue for the quarter was reported at $3.41 billion, outperforming the estimated $3.29 billion and marking a 12% increase year-over-year. State Street’s total fee revenue saw a 13% rise to $2.66 billion, and net interest income increased 10% to $749 million compared to the same quarter last year.

Goldman Sachs has reaffirmed its confidence in State Street, maintaining a Buy rating and a $107.00 price target. The endorsement comes despite State Street’s 2025 financial outlook potentially falling short of investor expectations. Goldman Sachs suggests that investors may seek clarity on State Street’s capital return plans for 2025, as these details were not included in the guidance provided by the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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