BofA lowered the firm’s price target on Northern Trust to $85 from $90 and keeps a Buy rating on the shares. Shares sold-off after the bank reported a Q3 EPS miss due to higher credit costs, though the firm believes the stock reaction had more to do with management’s Q4 net interest income, or NII, guidance, the analyst tells investors. The Street appears to have underappreciated the near term funding cost dynamics, but the firm notes that during the earnings conference call management “did not rule out” the potential for NII to bounce and for Q4 to mark a trough.
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Read More on NTRS:
- Northern Trust price target lowered to $90 from $94 at Barclays
- Wells Fargo downgrades Northern Trust, sees disappointments continuing
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- Northern Trust NII guidance weighing on shares, says Keefe Bruyette
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