Bank of America Securities analyst Ebrahim Poonawala reiterated a Buy rating on Bank of New York Mellon yesterday and set a price target of $142.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that, in his view, are not yet fully reflected in Bank of New York Mellon’s share price. He highlights that management’s latest update, coupled with solid 4Q25 results, points to further improvement in already industry-leading profitability and supports a double-digit earnings growth outlook. He also notes that the current valuation multiple is below what comparable asset‑light financial firms receive, despite BNY Mellon’s strong projected EPS growth and strategic positioning in rapidly developing areas such as artificial intelligence and digital assets. In addition, Poonawala emphasizes the company’s consistent execution under CEO Robin Vince, with the stock substantially outperforming key benchmarks and peers since Vince took over, while avoiding major negative surprises in a volatile operating environment.
He further underscores that the company’s 2026 guidance appears conservative, leaving room for upside as revenue trends and operating leverage improve, which led him to slightly raise his earnings forecasts and price objective. Poonawala points to the upgraded return on tangible common equity and pre‑tax margin targets as evidence that the strategy to enhance franchise efficiency is gaining traction. Strong capital generation and disciplined balance sheet management are expected to support robust capital returns, including significant share repurchases and high payout ratios, reinforcing total shareholder value. Taken together, these elements frame BK as a high‑quality, well‑positioned franchise trading at an attractive valuation, justifying his Buy recommendation and elevated price objective.
In another report released yesterday, TipRanks – xAI also reiterated a Buy rating on the stock with a $133.00 price target.