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Headquartered in New York City, The Bank of New York Mellon Corporation (BK) is a prominent financial services provider in the banking industry. With a significant market presence and a market cap of $56.9 billion, BNY Mellon offers a wide range of financial solutions, including investment management, wealth management, and corporate and institutional banking services.
Bank of New York Mellon stock has outperformed the broader market considerably over the past year. The stock gained 66.6% over this time frame, while the S&P 500 Index ($SPX) has rallied 30.6%. In 2024 alone, shares of BK are up 51.1%, while the SPX is up 23.6% on a YTD basis.
Narrowing the focus, BK has also outperformed the SPDR S&P Bank ETF’s (KBE) gains. The exchange-traded fund has gained about 49.9% over the past year and 30.1% on a YTD basis, lagging behind BK stock’s gains over the same time frame.
On Nov. 4, Bank of New York Mellon completed the acquisition of Archer Holdco, a strategic move aimed at bolstering its managed account solutions, enhancing distribution capabilities, and solidifying its leadership position in asset and wealth management services.
Additionally, following its Q3 earnings release on Oct. 11, the stock gained 2.1%, driven by strong financial performance. The company reported an adjusted EPS of $1.52, reflecting a robust 19.7% year-over-year increase, while quarterly revenue rose 5.2% year-over-year to $4.65 billion, showcasing steady growth momentum.
For the current fiscal year, ending in December, analysts expect BK to report an EPS to grow by 15.3% to $5.82 on a diluted basis. The company’s earnings surprise history is robust. It beat the consensus estimates in each of the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration has been consistent over the past month.
On Nov. 14, Wells Fargo (WFC) raised Bank of New York Mellon's price target to $81 from $79, citing potential benefits from a regulatory shift, EPS growth, increased capital flexibility, and M&A activity.
The mean price target of $82.23 represents a 4.6% premium to BK’s current price levels. The Street-high price target of $90 suggests an upside potential of 14.4%.
