Is STT's Q1 2025 EPS forecast optimistic?
4/3/2025 12:23am
**State Street's (STT) Q1 2025 EPS forecast appears optimistic for several reasons**:
1. **Analyst Upgrades**: Both Seaport Res Ptn and Zacks Research have recently upgraded their EPS estimates for Q1 2025, indicating a positive outlook on the company's earnings potential. This suggests that analysts are expecting State Street to perform well in the upcoming quarter.
2. **Recent Performance**: State Street's stock is trading near its 52-week high, which indicates a strong market confidence in the company's prospects. This recent performance can be a good indicator of a company's potential earnings.
3. **Goldman Sachs' Confidence**: Goldman Sachs has maintained a Buy rating on State Street and set a price target of $107.00, which is above the current trading price. This suggests that Goldman Sachs expects the stock to appreciate further, which could be driven by strong EPS performance.
4. **Truist Securities' Price Target Adjustment**: While Truist Securities reduced its price target to $104 from $106, the adjustment is still above the current trading price and suggests a positive long-term outlook. The fact that Truist Securities maintained a Hold rating despite the price target cut also indicates a cautious optimism.
In conclusion, the EPS forecast for State Street in Q1 2025 seems to be optimistic, considering the recent analyst upgrades, the company's strong market performance, and the confidence expressed by Goldman Sachs and Truist Securities. However, investors should monitor the company's actual earnings performance when the results are announced on January 17th to validate the forecast optimism.