Street View: BNY focuses on operating leverage as profit outlook improves

BNY BK.N reported a 21% jump in third-quarter profit on Thursday, as the world's largest custodian bank earned higher interest and fees on its services, while soaring equity markets boosted the value of its client assets

Average rating of 18 analysts is "buy"; median PT $119, an 11.5% upside to the stock's last close - data compiled by LSEG

NEW CEO'S STEADY HAND

KBW ("outperform," PT: $124) sees BNY having room to boost profits in its investment and wealth management business with little exposure to risky loans or interest rate swings; says nearly all earnings are returned to shareholders

J.P. Morgan ("overweight," PT: $122) says BNY's asset and wealth management businesses are under pressure due to client outflows and unclear underlying trends; but the division's operating margins have improved slightly, although they're still low

Barclays ("overweight," PT: $120) says BNY is taking a broad look at how to drive positive operating leverage in 2026

Morningstar (fair value: $90) says stronger operating leverage has been a key reason for BNY's stock outperformance; since CEO Robin Vince took over in August 2022, revenue has grown faster than expenses, by 2% in 2023 and 3% in 2024