State Street upgraded to Outperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst David Konrad upgraded State Street (STT) to Outperform from Market Perform with a price target of $120, up from $105. Although State Street does not have similar upside to earnings as peers in a “Blue Sky scenario,” the bank has market-sensitive revenues tied to higher custody and asset management revenues, which should be a tailwind over the next few years as it has more equity exposure compared to other trust banks, the analyst tells investors in a research note. In addition, the firm says State Street’s valuation is more compelling with the underperformance since earnings.