Goldman downgrades Northern Trust to Sell on interest rate risk

Goldman Sachs downgraded Northern Trust to Sell from Neutral with a price target of $82, down from $84. The firm says recent changes in interest rate expectations create a “renewed downside risk” to earnings estimates and Northern Trust’s earnings growth algorithm. After the bank’s balance sheet repositioning earlier in the year, Northern Trust is one of the more asset-sensitive companies in the group, creating downside risks to net interest income, the analyst tells investors in a research note.