Ebrahim Poonawala, an analyst from Bank of America Securities, reiterated the Sell rating on State Street. The associated price target was raised to $109.00.
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Ebrahim Poonawala’s rating is based on several factors impacting State Street’s stock performance. Despite reporting better-than-expected earnings for the second quarter of 2025, with EPS surpassing estimates and strong fee revenue, the stock underperformed its peers. This underperformance is attributed to investor concerns over the net interest income outlook, which remains flat year-over-year, and the anticipated continuation of noninterest-bearing deposit outflows.
Ebrahim Poonawala also notes the lack of unique catalysts for State Street and sees better risk/reward opportunities elsewhere in the market. While management is optimistic about building capabilities in areas like custody and tokenization, the absence of a clear regulatory framework for digital assets poses a challenge. Consequently, the combination of these factors supports the decision to maintain a Sell rating on State Street’s stock.
Based on the recent corporate insider activity of 84 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 STT in relation to earlier this year.