Bloomberg: Barclays Maintains Overweight on New York Mellon, Raises PT to $120

Bloomberg: Barclays Maintains Overweight on New York Mellon, Raises PT to $120

Bank of New York Mellon (BNY Mellon) has seen its stock price target elevated by Keefe, Bruyette & Woods (KBW) to $124.00, up from the previous target of $120.00, while maintaining an "Outperform" rating on the stock. The research firm noted that BNY Mellon's latest quarterly results demonstrated strong financial health, with a core return on tangible common equity (ROTCE) of nearly 27% and a core pretax margin of 37%.

KBW highlighted BNY Mellon's impressive operational performance, with revenue reaching $19.27 billion and consistent dividend payments spanning 55 consecutive years. The firm also expressed confidence in the company's ability to capitalize on its new commercial and platform operating models, despite already benefiting from higher markets and increased client activity.

The research firm identified potential for modest margin improvements in BNY Mellon's Investment and Wealth Management segments, along with potential growth rate enhancements. KBW also noted the bank's favorable risk profile, with limited credit and rate risk, and a nearly 100% payout ratio to shareholders, contributing to its continued "Outperform" rating.

In other recent developments, BNY Mellon reported its third-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share of $1.91, compared to the forecast of $1.77, and revenue surpassed projections, reaching $5.08 billion against the expected $4.97 billion. Despite these strong results, BNY Mellon's stock experienced a decline in pre-market trading.

The focus remains on BNY Mellon's impressive financial performance, with no recent mergers or acquisitions reported. Analyst upgrades or downgrades have not been mentioned in the recent developments.