Northern (NTRS) has received a new Hold rating, initiated by BMO Capital analyst, .
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BMO Capital has given its Hold rating due to a combination of factors that reflect both the current valuation and operational outlook of Northern Trust. The firm notes that Northern Trust’s stock is trading at a premium compared to its peers, yet there seems to be a lack of urgency in implementing efficiency improvements and setting ambitious targets. This premium valuation is difficult to justify without a clear strategy or measurable plans for progress.
While some key financial metrics have shown positive trends, BMO Capital points out that these improvements are partly driven by favorable equity market conditions, and the long-term sustainability of these gains remains uncertain. Additionally, the core business growth is decelerating, which poses a risk to maintaining the premium valuation, especially when compared to other wealth management firms. Without a clear catalyst or shift in management’s approach to setting and achieving targets, BMO Capital finds it challenging to recommend Northern Trust shares more favorably.
In another report released today, Truist Financial also maintained a Hold rating on the stock with a $142.00 price target.
Based on the recent corporate insider activity of 115 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NTRS in relation to earlier this year.