Wells Fargo analyst Mike Mayo has maintained their neutral stance on NTRS stock, giving a Hold rating today.
Mike Mayo has given his Hold rating due to a combination of factors impacting Northern’s financial outlook. Despite exceeding expectations in net interest income (NII) and managing expenses well, the company is experiencing weaker fee growth and faces potential challenges from declining market conditions. This has led to a reduction in earnings estimates and a lowered price target for Northern’s stock.
Moreover, Northern’s growth trajectory is lagging behind its peers in the trust banking sector, which diminishes the justification for its premium valuation. While the company has shown positive deposit trends and has been conservative with its investments, the lackluster performance in fee categories and the transitory nature of deposit growth contribute to the cautious outlook. Additionally, Northern’s strategic focus on maintaining a strong capital position, despite deploying excess capital for share buybacks, reflects its need to compete against larger institutions but also highlights the limitations in achieving big bank scale.
In another report released today, Barclays also maintained a Hold rating on the stock with a $128.00 price target.
NTRS’s price has also changed slightly for the past six months – from $95.790 to $89.360, which is a -6.71% drop .