REFILE-Custodian bank BNY beats Q4 profit estimates, raises medium-term financial targets

Overview

• U.S. financial services firm's Q4 revenue rose 7% yr/yr

• Diluted EPS for Q4 increased 31% yr/yr; Adjusted EPS beats analyst estimates

• Company returned $1.4 bln to shareholders via dividends and buybacks

Outlook

• BNY expects greater scale and growth opportunities in 2026

• Company enters 2026 with positive momentum

• BNY raises medium-term financial targets

Result Drivers

• NET INTEREST INCOME - Co reported a 13% yr/yr increase in net interest income, contributing to revenue growth

• FEE REVENUE - Fee revenue increased 5% yr/yr, aiding overall revenue growth

• CAPITAL RETURN - Returned $1.4 bln to shareholders through dividends and share repurchases

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for BNY is $131.50, about 9% above its January 12 closing price of $120.66

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

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