Northern Trust downgraded to Neutral from Buy at UBS

UBS analyst Brennan Hawken downgraded Northern Trust to Neutral from Buy with a price target of $80, down from $100. The firm cites weaker deposit dynamics for the downgrade, with Northern Trust’s deposits down 24% since 1Q22, and with non-operating deposits up to near peak levels, deposit cost relief seems unlikely, the analyst tells investors in a research note. Northern Trust is also facing increased expense pressure and is less likely to pursue share repurchases as they prioritize bolstering their capital ratios in relation to peers, UBS says.