BNY Mellon price target raised to $49 from $44 at RBC Capital

RBC Capital analyst Gerard Cassidy raised the firm’s price target on BNY Mellon to $49 from $44 and keeps a Sector Perform rating on the shares after its Q1 results. The company has benefited from the rise in Fed Funds as it has posted double-digit net interest income growth, and two-thirds of its deposit base are operational accounts for institutional clients and sticky in nature, the analyst tells investors in a research note. RBC further notes that BNY Mellon is well capitalized and plans to be judicious in returning 100% of its earnings in dividends and stock buybacks in 2023.