BNY Mellon Stock Earns Buy Rating with Raised Target

Bank of New York Mellon's stock price (NYSE: BK) has shed 0.72% today, fresh off highs as BofA Securities increased the financial giant's price target from $90 to $95, reaffirming a Buy rating on the shares. This bullish sentiment arrives on the heels of BNY Mellon's recent earnings success, which prompted the investment firm to adjust its FY25 and FY26 earnings per share estimates upward by approximately 5%.

Despite a strong performance over the past year, the adjusted valuation suggests that BNY Mellon's growth prospects remain attractive for investors.

The updated estimates from BofA highlight strength in BNY Mellon's core businesses, with the revised FY25 and FY26 EPS estimates acknowledging the firm's capacity for income growth. BofA's assessment points to a valuation that is “compelling,” particularly in light of the company's track record over the recent year. With these adjustments, BNY Mellon continues to enjoy the support and confidence of analysts who expect enduring performance backed by solid fundamentals.

With its headquarters nestled in the heart of New York, NY, BNY Mellon operates as a leading player in the diversified banks industry, delivering a broad spectrum of financial products and services both domestically and internationally. Founded in 1784, the company's operations straddle various segments, including Securities Services, Market and Wealth Services, and Investment and Wealth Management, to name a few. These services range from custody, wealth and estate planning, private banking, and asset management, which cater to a varied clientele including central banks, financial institutions, and high net-worth individuals.

The market cap for BNY Mellon stands at roughly $58.87 billion, with its stock trading within a 52-week range of $52.64 to $82.72.

With a trailing P/E ratio of 14.14 and a forward P/E of 10.79, BNY Mellon exhibits financial robustness. The bank's dividend rate is set at $1.88, corresponding to a yield of approximately 2.48%, while maintaining a payout ratio of nearly 38.7%. This financial stability is further evidenced by its total revenue of $17.80 billion and net income to common shareholders at $3.35 billion.

Institutionally, BNY Mellon has seen extensive investment, with insiders and institutions holding around 0.183% and 87.737% of the stock, respectively. Analysts have set a mean target price of $88.04, with a consensus rating of “Buy” based on 16 different analyst opinions.