Update shared on04 Sep 2025
Analysts maintain a positive outlook on State Street, citing robust AUC/A growth, higher fee revenues, and increased net interest income driven by favorable markets and rising rates, leaving the consensus price target unchanged at $115.11.
Analyst Commentary
- Bullish analysts cite robust growth in assets under custody/administration (AUC/A), supported by a favorable equity market environment.
- Improved management and servicing fee revenues are attributed to increased client asset levels from market strength.
- Higher net interest income is resulting from increased deposit inflows and growth in earning asset balances.
- The Q2 period saw an 11% rise in global equity prices and a 4.5% increase in fixed income asset levels, further boosting managed assets and related fees.
- Upward revisions also reflect heightened interest rate expectations, which support core balance sheet-driven revenue streams.
What's in the News
- State Street formed a strategic partnership with Apex Fintech Solutions, including a minority investment, to expand its global digital wealth custody and clearing offerings, positioning itself as a leader in scalable, digitally enabled wealth management services (Key Developments, 2025-09-03).
- Columbia Threadneedle Investments selected State Street as its unified global back-office provider, consolidating fund accounting, administration, and custody services for US and European pooled funds, expected to drive operational efficiencies and cost savings for Columbia Threadneedle and fund shareholders (Key Developments, 2025-08-29).
- A federal court denied motions to dismiss the State of Texas’s antitrust lawsuit against State Street, Blackrock, and Vanguard, alleging collusion to restrict coal output, allowing the high-profile case to proceed to discovery with potential liabilities in the billions (Key Developments, 2025-08-05).
- State Street launched eleven Select Sector SPDR® Premium Income Funds, pioneering sector-based premium income ETFs to provide enhanced income and volatility mitigation, further strengthening its position as a sector ETF innovator (Key Developments, 2025-07-30).
- State Street was named as a possible acquisition target by Goldman Sachs amid broader M&A speculation in the banking sector, and its global head of digital technology and quantum computing, Rob Otter, departed to join JPMorgan’s advanced technology group (Periodicals, The New York Post & CNBC, July 2025).
Valuation Changes
Summary of Valuation Changes for State Street
- The Consensus Analyst Price Target remained effectively unchanged, at $115.11.
- The Consensus Revenue Growth forecasts for State Street remained effectively unchanged, at 3.2% per annum.
- The Discount Rate for State Street remained effectively unchanged, at 9.59%.
Disclaimer
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