Betsy Graseck, an analyst from Morgan Stanley, maintained the Buy rating on State Street (STT – Research Report). The associated price target remains the same with $142.00.
Betsy Graseck’s rating is based on the strategic acquisition by State Street of Mizuho’s global custody and related businesses outside of Japan. This move is significant as it enhances State Street’s scale in the custody business, which is increasingly consolidating. The acquisition aligns with State Street’s strategy to expand its global footprint and effectively utilize its excess capital.
Furthermore, the financial implications of this acquisition were already anticipated and communicated during State Street’s fourth-quarter earnings call, indicating that the positive impacts are likely already reflected in consensus estimates. This acquisition, while small, underscores the potential for more cross-border deals, positioning State Street favorably in the evolving global custody landscape.
In another report released on February 14, Barclays also maintained a Buy rating on the stock with a $127.00 price target.
Based on the recent corporate insider activity of 81 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.