State Street Adjusts Outlook Amid Strong Fee Growth, Higher Expenses

Truist lowered its price target for State Street (STT) to $136 from $138, while Morgan Stanley lowered its target to $164 from $168. The adjustments reflect stronger fee growth and higher expenses. State Street reported a 14% YoY increase in EPS, surpassing $50 trillion in assets under custody and administration for the first time. Profitability remained high with a 20% return on tangible common equity and $500 million in annual productivity savings.