State Street’s Strong Financial Performance and Positive Outlook Justify Buy Rating

Analyst Betsy Graseck from Morgan Stanley maintained a Buy rating on State Street (STT – Research Report) and increased the price target to $105.00 from $102.00.

Betsy Graseck’s rating is based on several positive indicators for State Street’s financial performance. The company has demonstrated consistent positive operating leverage over the past five quarters, with a notable improvement in expense management contributing to this trend. State Street’s management has shown the ability to adjust expenses relative to revenue, with a significant portion of their expenses being variable, which supports their financial flexibility.
Additionally, the company’s earnings per share (EPS) estimates have been raised for both 2025 and 2026, driven by higher fees and lower expenses, despite some challenges with net interest income. The price target for State Street’s stock has also been increased, reflecting confidence in the company’s future performance. Furthermore, the company’s sales pipeline remains robust, and the underlying business momentum is strong, despite some temporary outflows due to a specific client transition. These factors collectively support the Buy rating given by Betsy Graseck.

In another report released on April 17, Goldman Sachs also maintained a Buy rating on the stock with a $98.00 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.