Goldman Sachs analyst Alexander Blostein upgraded BNY Mellon to Buy from Neutral with a $59 price target, representing 30% upside. The combination of an improving fee outlook amid significant asset rotation potential into fixed income, stable to slightly growing net interest income through 2024, "underappreciated" pre-tax margin improvement opportunity amid decelerating expense growth into 2023 and an accelerating share repurchase outlook create "healthy" earnings upside to consensus estimates in 2023 and especially 2024, Blostein tells investors in a research note. The analyst says BNY’s valuation does not reflect this earnings upside and its improving capital return profile.
Published first on TheFly
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