Ebrahim Poonawala, an analyst from Bank of America Securities, reiterated the Buy rating on Northern (NTRS – Research Report). The associated price target was lowered to $118.00.
Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight Northern Trust’s strong financial performance and strategic positioning. The company reported first-quarter earnings per share (EPS) that surpassed expectations, driven by robust growth in net interest income. This positive financial performance is further supported by an aggressive share repurchase program, indicating a high earnings payout ratio and demonstrating confidence in future earnings stability.
Poonawala also points to Northern Trust’s capital flexibility, evidenced by a significant pre-tax unrealized gain from Visa shares, which enhances its ability to manage capital effectively. Additionally, the company’s commitment to maintaining disciplined expense growth and its differentiated wealth management franchise position it well against market headwinds. These factors, combined with an attractive valuation, make Northern Trust a compelling investment opportunity, justifying the Buy rating.
NTRS’s price has also changed slightly for the past six months – from $95.790 to $89.360, which is a -6.71% drop .