CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
BK is executing with $45.7T (+8% Y/Y) assets under custody and $1.8T (+3%) AUM. We keep our $52 target on a forward P/E of 10.3x our 2024 EPS estimate vs. the three-year historic average at 11.4x. We raise our 2023 EPS view by $0.05 to $4.90 and lower 2024’s by $0.10 to $5.05, above consensus. BK posted Q3 2023 EPS of $1.22, a $0.08 consensus beat. We forecast 2023 revenue at $17.45B (prior $17.60B) and 2024’s at $17.65B (prior $18.0B) vs. $16.3B in 2022. BK’s total NII was +10% Y/Y and non-NII was flat, leading to -2% total revenue growth. Total deposits were $262B, down from $279B at year-end 2022, and well below $345B in 2021. Securities Services segment revenue was +1% Y/Y and pre-tax income was -7%, with a boost to asset servicing; Market and Wealth Services was +6% (flat), with strong results from Pershing +6% Y/Y, Treasury Services flat, and Clearance and Collateral Management +12%. The Investment and Wealth Management segment was -2% (NM), with AUM +3%, which reduced investment management fees by 5%.