Citi Boosts State Street (STT) Target on Strong Business Fundamentals

State Street Corporation (NYSE:STT) is included among Billionaire Mario Gabelli’s Top 12 Dividend Stocks.

On June 23, Citi raised its price recommendation on State Street Corporation to $193 from $172. It reiterated a Buy rating on the shares. The update came as part of its second-quarter earnings preview. The firm said it sees upside to estimates based on favorable business fundamentals. Citi also noted that a lower assumed cost of equity contributed to the increase in its price target.

Earlier, on May 26, Wells Fargo raised its price goal on State Street to $171 from $162. It kept an Overweight rating on the stock. According to the firm, a meeting with CFO John Woods reinforced its view that State Street is in the midst of a multiyear inflection point driven by organic growth, operating leverage, and earnings per share expansion. Wells Fargo added that two to three years of behind-the-scenes work now appear to be becoming more visible. The firm believes State Street has the potential to re-rate higher.

State Street Corporation is a financial holding company. Through its subsidiary, State Street Bank and Trust Company, the company provides a range of financial products and services to institutional investors.

READ NEXT: Top 11 Dividend Kings to Buy for Safe Dividend Growth and 13 Best Dividend Stocks to Buy Under $25

Follow Insider Monkey on Google News.