Bank of New York Mellon (NYSE: BK)
The analysts wrote, ?Our downgrade is based both on valuation as well as our concern that BK?s 4Q12 results may fall short of investor expectations. Since late September, BK is up ~15% versus STT and NTRS which are up ~10% and ~8%, respectively, and the BKX which is up ~5% over the same period. BK currently trades at ~11.1x our estimated ?13 EPS which we note is at the high end of its two-year range. We note that various public metrics suggest that BK was not being overly bearish: the 3ML-FF spread compressed ~12 bps q/q, FX trading volumes and vol fell to a multi-year low. Also, BK said the 4Q drag on its DR business would be ~$100 mm. As a result, we have reduced our 4Q12 estimate from $0.59 to $0.55. Although our revised 4Q12 estimate is in line with consensus, we nonetheless believe a negative earnings surprise is more likely than a positive surprise either in terms of 4Q12 results or 2013 guidance. Given this setup and the run in the stock, we see no reason to be long into the quarter.? A number of other firms have also recently commented on BK. Analysts at Zacks reiterated a ?neutral? rating on shares of Bank of New York Mellon in a research note to investors on Thursday, December 27th. They now have a $27.00 price target on the stock. Separately, analysts at Sandler O?Neill downgraded shares of Bank of New York Mellon from a ?buy? rating to a ?hold? rating in a research note to investors on Tuesday, December 4th. Finally, analysts at Barclays Capital reiterated an ?overweight? rating on shares of Bank of New York Mellon in a research note to investors on Friday, November 9th. They now have a $32.00 price target on the stock. Bank of New York Mellon traded up 2.67% on Friday, hitting $27.29. Bank of New York Mellon has a 1-year low of $19.30 and a 1-year high of $26.89. The stock?s 50-day moving average is currently $24.78. The company has a market cap of $31.891 billion and a price-to-earnings ratio of 13.81. Bank of New York Mellon last posted its quarterly earnings results on Wednesday, October 17th. The company reported $0.57 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.54 by $0.03. The company?s revenue for the quarter was down .5% on a year-over-year basis. On average, analysts predict that Bank of New York Mellon will post $2.07 earnings per share for the current fiscal year.
The Bank of New York Mellon Corporation (BNY Mellon) is a global financial services company. The Company divides its businesses into two principal segments: Investment Management and Investment Services.