Story updated at 10 a.m. to reflect market activity.
Shares of State Street gained 0.4% to $74.23 in morning trading.
The analyst firm set a price target of $90 for the asset management company. The company has lagged behind its peers, but has potential operating leverage, according to Citigroup analysts.
"STT is our top pick, because while scale is a big advantage in providing commodity-like back and middle office functions, we believe STT is at the forefront of leveraging its technology and data to provide real value-added services to their clients to help them evaluate risk exposures and performance in order to satisfy increased regulatory and investor requirements, which can be a key differentiator," Citigroup analysts wrote.
Separately, TheStreet Ratings team rates STATE STREET CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate STATE STREET CORP (STT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."