BNY, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Betsy Graseck from Morgan Stanley maintained a Buy rating on the stock and has a $101.00 price target.
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Betsy Graseck’s rating is based on several compelling factors that highlight BNY Mellon’s strong financial performance and strategic initiatives. The company has demonstrated a significant earnings per share (EPS) growth, with projections for 2025 and 2026 being raised due to increased fees and net interest income (NII), which are volume-driven. This consistent growth trajectory, coupled with a robust return on tangible common equity (ROTCE) of 28%, surpasses the medium-term target, indicating a strong financial position.
Furthermore, BNY Mellon’s management has shown confidence in their strategic direction, particularly with the successful implementation of their platforms operating model, which has resulted in positive operating leverage for six consecutive quarters. The company’s focus on organic growth, supported by the integration of AI technology and a streamlined workforce, positions it well for future gains. These factors, combined with an increased price target, support Betsy Graseck’s Buy rating for BNY’s stock.
Graseck covers the Financial sector, focusing on stocks such as JPMorgan Chase, State Street, and Wells Fargo. According to TipRanks, Graseck has an average return of 4.2% and a 50.30% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $104.00 price target.