NEW YORK (TheStreet) -- RBC Capital downgraded State Street Corporation (STT - Get Report) to "sector perform" from "outperform," set a $68 target price and reduced its estimates due to lower sales and higher expected costs.
The stock was falling 2.94% to $65.41 shortly after the market opened on Friday.
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- The revenue growth came in higher than the industry average of 16.9%. Since the same quarter one year prior, revenues slightly increased by 0.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- STATE STREET CORP has improved earnings per share by 22.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, STATE STREET CORP increased its bottom line by earning $4.61 versus $4.19 in the prior year. This year, the market expects an improvement in earnings ($5.10 versus $4.61).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Capital Markets industry average. The net income increased by 17.6% when compared to the same quarter one year prior, going from $470.00 million to $553.00 million.
- You can view the full analysis from the report here: STT Ratings Report