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BK: Digital Assets, AI Integration And Buybacks Will Shape A Balanced Outlook

Digital Transformation And Partnerships Will Shape Financial Markets Of Tomorrow

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BK
AnalystConsensusTarget
Not Invested
Published 06 Aug 2024

Update shared on 21 Dec 2025

Fair value Increased 0.85%
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Analysts modestly raised their price target on Bank of New York Mellon by approximately 1 dollar to reflect slightly stronger long term revenue growth expectations, partially offset by a marginally lower forecast profit margin and a small adjustment to the discount rate.

What's in the News

  • BNY integrated Google Cloud's Gemini Enterprise platform into its Eliza enterprise AI system to enhance agentic research, automate data intensive tasks, and give employees multimodal tools to analyze complex financial information (Key Developments)
  • The firm launched the BNY Dreyfus StablecoinReserves Fund, a government money market vehicle designed to hold reserves for U.S. stablecoin issuers under the GENIUS Act, targeting rapid growth in the stablecoin market and securing an initial investment from Anchorage Digital (Key Developments)
  • WisdomTree appointed BNY as the core banking as a service infrastructure provider for its WisdomTree Prime retail platform, making WisdomTree BNY's first retail digital assets BaaS client and expanding access to tokenized real world assets for U.S. investors (Key Developments)
  • BNY completed a major share repurchase tranche, buying back more than 35.8 million shares, or just over 5% of its share count, under the buyback program announced in April 2024 (Key Developments)
  • The company guided to net interest income for full year 2025 rising about 12% year over year, with fourth quarter net interest income expected to be roughly flat sequentially after a strong third quarter (Key Developments)

Valuation Changes

  • The fair value estimate has risen slightly to 119.03 dollars from 118.03 dollars, reflecting modestly higher long term expectations.
  • The discount rate has fallen slightly to approximately 10.51 percent from 10.61 percent, implying a modestly lower required return.
  • Revenue growth has risen slightly to about 3.74 percent from 3.51 percent, indicating a marginally stronger growth outlook.
  • The net profit margin has edged down slightly to roughly 28.19 percent from 28.37 percent, reflecting a small compression in expected profitability.
  • The future P/E has increased slightly to about 16.63 times from 16.54 times, suggesting a modestly higher valuation multiple on forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.