The analysts believe that State Street 's current price-to-earnings ratio for the year 2025, which stands at 9 times, is appealing and indicates a substantial potential for stock appreciation. InvestingPro's Fair Value analysis suggests that State Street is currently undervalued, supporting the bullish outlook. Despite the slight decrease in the price target, the overall sentiment from Goldman Sachs (NYSE:GS) remains optimistic about State Street's financial performance moving forward. Discover more detailed valuation metrics and additional ProTips by exploring State Street's complete financial profile on InvestingPro.
The financial institution's recent fourth quarter of 2024 earnings call provided insights that reinforced Goldman Sachs' favorable view. Analysts highlighted the growing momentum in servicing fees as a key driver, which they believe will more than compensate for the ongoing attrition from BlackRock (NYSE:BLK) and any adverse effects from foreign exchange movements.
The analysts believe that State Street's current price-to-earnings ratio for the year 2025, which stands at 9 times, is appealing and indicates a substantial potential for stock appreciation. InvestingPro's Fair Value analysis suggests that State Street is currently undervalued, supporting the bullish outlook. Despite the slight decrease in the price target, the overall sentiment from Goldman Sachs remains optimistic about State Street's financial performance moving forward. Discover more detailed valuation metrics and additional ProTips by exploring State Street's complete financial profile on InvestingPro.
Goldman Sachs' revised earnings per share (EPS) estimates for State Street remain largely unchanged for the years 2025, 2026, and 2027, at $9.67, $11.04, and $12.80, respectively. These figures are only slightly adjusted from their previous predictions of $9.79, $11.10, and $12.73 to align with the company's guidance for 2025 and the latest forward curve.
The analysts believe that State Street's current price-to-earnings ratio for the year 2025, which stands at 9 times, is appealing and indicates a substantial potential for stock appreciation. InvestingPro's Fair Value analysis suggests that State Street is currently undervalued, supporting the bullish outlook. Despite the slight decrease in the price target, the overall sentiment from Goldman Sachs remains optimistic about State Street's financial performance moving forward. Discover more detailed valuation metrics and additional ProTips by exploring State Street's complete financial profile on InvestingPro.
In other recent news, State Street Corporation (NYSE:STT) reported a successful fourth quarter, exceeding analyst expectations with adjusted earnings per share of $2.60 and revenue at $3.41 billion, marking a 12% increase year-over-year. State Street's total fee revenue saw a 13% rise to $2.66 billion, and net interest income increased 10% to $749 million compared to the same quarter last year. The company's assets under custody and administration reached $46.7 trillion, an 11% increase from the previous year.
Truist Securities recently revised its financial outlook for State Street, reducing the price target to $104 from $106 while maintaining a Hold rating on the shares. CFRA also adjusted their stance on State Street, lifting the stock rating but cutting the price target to $113. Goldman Sachs maintained a Buy rating for State Street, holding the stock target at $107.
These revisions followed the company's forward-looking guidance for 2025, which did not meet expectations in terms of revenue projections and payout ratios. Analysts at Truist Securities revised their earnings per share (EPS) estimates for State Street, decreasing the 2025 EPS estimate to $9.55, and the 2026 EPS estimate to $10.70. Despite the target reduction, five analysts have recently revised their earnings estimates upward for the upcoming period, suggesting potential optimism.
In other developments, State Street returned $2.2 billion to shareholders in 2024, including $1.3 billion in buybacks and $900 million in dividends, offering a 3% dividend yield. The company has maintained dividend payments for 55 consecutive years. These are the recent developments for State Street Corporation.
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