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With a market cap of $62 billion, The Bank of New York Mellon Corporation (BK) is a global financial services company offering investment management and investment services to institutions, corporations, and high-net-worth individuals. Based in New York, it provides solutions for custody, asset servicing, wealth management, and capital markets worldwide.
The investment bank's shares have outperformed the broader market over the past 52 weeks. BK has increased 53.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.5%. Moreover, shares of BK are up 11.1% on a YTD basis, compared to SPX’s 2.9% gain.
In addition, BNY Mellon has also outpaced the Financial Select Sector SPDR Fund’s (XLF) 30.8% return over the past 52 weeks and a 6.3% YTD gain.
BNY Mellon shares surged over 8% on Jan. 15 due to its stronger-than-expected Q4 2024 earnings, with adjusted EPS of $1.72 and reflecting a 33.3% year-over-year increase. The company’s total revenues grew 11.2% to $4.9 billion, surpassing estimates, driven by a rise in fee income, investment services fees, and higher assets under custody/administration (AUC/A) and assets under management (AUM). Additionally, a 16% decline in total non-interest expenses to $3.4 billion and an 8.4% rise in net interest income (NII) to $1.2 billion further strengthened investor confidence, fueling the stock’s surge.
For the current fiscal year, ending in December 2025, analysts expect BK’s EPS to grow 14.9% year-over-year to $6.93. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is more bullish than three months ago, with nine “Strong Buy” ratings on the stock.
On Feb. 10, J.P. Morgan analyst Vivek Juneja reaffirmed a “Buy” rating on BNY Mellon and set a price target of $94.
As of writing, BK is trading below the mean price target of $91.57. The Street-high price target of $104 implies a potential upside of 21.9% from the current price levels.
