Bank of America Securities analyst Ebrahim Poonawala reiterated a Buy rating on Northern yesterday and set a price target of $135.00.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight Northern’s strong wealth franchise and potential for improved performance. He notes that Northern’s wealth franchise is considered best-in-class and contributes significantly to the company’s bottom line, although past execution issues have hindered shareholder returns. Recent leadership changes suggest management is taking steps to enhance performance, which could unlock the franchise’s full value.
Additionally, Poonawala points out that management has expressed a commitment to remain independent while focusing on growth and productivity improvements. The company’s recent financial performance, including a 13.5% return on equity for the first half of 2025, aligns with these strategic goals. Furthermore, the stock’s current valuation does not fully reflect potential merger and acquisition opportunities, which could serve as a catalyst for future stock price appreciation. These factors collectively support the Buy rating and the price objective of $135.
Poonawala covers the Financial sector, focusing on stocks such as JPMorgan Chase, Goldman Sachs Group, and BNY. According to TipRanks, Poonawala has an average return of 13.9% and a 72.75% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $142.00 price target.