Truist Upgrades State Street to Buy, Raises Price Target to $112

Truist Securities analyst David Smith upgraded State Street Corporation (NYSE:STT) from a Hold to a Buy rating, raising the price target significantly from $85 to $112, reflecting increased confidence in the company's growth potential. This upgrade is based on State Street's strong positioning to benefit from positive momentum in equity markets, driven by its assets under custody and administration, ETF growth, and asset management operations. The company's asset sensitivity to rising rate futures and significant foreign exchange revenue further enhance its recovery prospects. Additionally, the appointment of a permanent Chief Financial Officer has reduced leadership uncertainty, bolstering investor confidence. Despite the positive outlook, some analysts maintain a Hold rating, with an average target price around $104 and mixed brokerage recommendations, indicating a cautious yet optimistic market sentiment. State Street's recent earnings showed solid performance with a 21% year-over-year EPS increase, supporting the bullish analyst projections.