Wells Fargo Upgraded to Equal-Weight by New York Mellon, PT Raised to $109.

Wells Fargo Upgraded to Equal-Weight by New York Mellon, PT Raised to $109.

Wells Fargo has initiated coverage on New York Mellon (NYSE: BK) with an Equal Weight rating and a price target of $109.00, according to an Investing.com report. The upgrade from a previous Hold rating reflects the investment bank's positive outlook on the company's growth prospects and financial performance.

New York Mellon's third-quarter 2025 earnings call highlighted record revenue growth, with total revenue reaching $5.1 billion, up 9% year over year. The company also reported a significant improvement in earnings per share (EPS), with EPS increasing by 25% to $1.88. The pre-tax margin improved to 36%, and the return on tangible common equity (ROTCE) stood at 26%. These positive financial indicators underscore the company's robust performance and strong market position.

Wells Fargo cited several factors contributing to its upgraded rating and higher price target. The investment bank noted New York Mellon's diversified revenue streams, including security services, markets and wealth services, and investment and wealth management, which have shown varying degrees of growth. The company's strong balance sheet, characterized by a Tier One Leverage Ratio of 6.1% and a CET1 Ratio of 11.7%, further supports its financial stability.

The earnings call also highlighted New York Mellon's strategic focus on digital assets and stablecoins. The company's involvement in these areas positions it for future growth opportunities in the evolving money market ecosystem. Wells Fargo's analysis points to the company's ability to capitalize on technological advancements and adapt to changing market conditions.

Overall, the upgrade to an Equal Weight rating and the increased price target reflect Wells Fargo's positive assessment of New York Mellon's growth potential and financial health. Investors and financial professionals should closely monitor the company's performance and the evolving market conditions that may impact its future prospects.