Jefferies analyst Ken Usdin rates BNY Mellon a "hold," and on Thursday lowered his price target for the shares by a dollar to $34, while lowering his 2014 EPS estimate to $2.40 from $2.50, and his 2015 EPS estimate to $2.80 from $2.70.
Usdin estimates the company will post third-quarter EPS of 57 cents, declining from 62 cents the previous quarter and 61 cents a year earlier.
"BK has a tough outlook for revenues this quarter, as the flat short end of the yield curve applies further pressure to spread income and transactional fee lines face seasonal pressures," Usdin wrote in his earnings preview for trust banks.
"There is little chance of offsetting the weaker revenues with cost controls given several expense headwinds: the annual merit increase, a rebound in the "other" line and less help from the efficiency plan," he added.BK data by YCharts
Interested in more on Bank of New York Mellon? See TheStreet Ratings' report card for this stock.
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