Bank of New York Mellon Stock: Is Wall Street Bullish or Bearish?
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New York-based The Bank of New York Mellon Corporation (BK) provides a range of financial products and services, including investment and wealth management, asset servicing, and treasury solutions. Valued at a market cap of $73.1 billion, the company's global client base consists of financial institutions, corporations, government agencies, endowments and foundations, as well as high-net-worth individuals.
This bank has considerably outpaced the broader market over the past 52 weeks. Shares of BK have soared 63.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.6%. Moreover, on a YTD basis, the stock is up 34.9%, compared to SPX’s 9.6% rise.
Zooming in further, BK’s outperformance becomes more evident when compared to the SPDR S&P Bank ETF’s (KBE) 17.7% uptick over the past 52 weeks and 5% YTD return.
On Jul. 15, shares of BK closed down marginally after its Q2 earnings release. The company reported a record Q2 total revenue of $5 billion, up 9.4% from the year-ago quarter, with net interest income rising 16.8% and total fee and other revenue increasing 7.2% annually. Furthermore, on the earnings front, its adjusted EPS advanced 28.5% year-over-year to $1.94, topping consensus estimates by a notable margin of 11.5%. Higher average loans and deposits, along with a rise in its Assets Under Management (AUM) to $2.1 trillion, supported its quarterly performance.
For the current fiscal year, ending in December, analysts expect BK’s EPS to grow 18.1% year over year to $7.12. The company’s earnings surprise history is promising. It surpassed the consensus estimates in each of the last four quarters.
Among the 17 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on eight “Strong Buy,” three "Moderate Buy,” and six “Hold” ratings.
This configuration is less bullish than three months ago, with 10 analysts suggesting a “Strong Buy” rating.
On Aug. 1, JPMorgan Chase & Co. (JPM) analyst Vivek Juneja maintained a "Buy" rating on BK and set a price target of $105.50, implying a 1.8% potential upside from the current levels.
While the company is trading above its mean price target of $101.91, its Street-high price target of $113 suggests an upside potential of 9.1%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.