NEW YORK (TheStreet) -- The Bank of New York Mellon Corp.  (BK - Get Report)  was upgraded to "neutral" from "sell" by analysts at Goldman Sachs this morning, with a lowered price target of $34 from $35. 

The firm cited the company's more balanced risk-reward ratio as well as its progress on costs.

Goldman Sachs analysts also said BNY Mellon's management team is making progress on managing expenses, and expects to hear a firmer commitment on passing incremental market-driven revenues to the bottom line at the bank's upcoming investor day on October 28.

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Shares of BNY Mellon are lower by 0.41% to $36.21 in early market trading today.

Separately, TheStreet Ratings team rates BANK OF NEW YORK MELLON CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate BANK OF NEW YORK MELLON CORP (BK) 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 reasonable valuation levels, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has significantly increased by 92.71% to $3,440.00 million when compared to the same quarter last year. In addition, BANK OF NEW YORK MELLON CORP has also vastly surpassed the industry average cash flow growth rate of -82.12%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.
  • The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 97.92%. Regardless of BK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.03% trails the industry average.
  • BANK OF NEW YORK MELLON CORP's earnings per share declined by 32.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BANK OF NEW YORK MELLON CORP reported lower earnings of $1.74 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($2.39 versus $1.74).
  • You can view the full analysis from the report here: BK Ratings Report

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