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