Truist Expects Core Revenue Growth to Drive BNY Mellon (BK) Profitability Despite Expense, Buyback Headwinds

The Bank of New York Mellon Corporation (NYSE:BK) is one of the best large cap value stocks to buy in 2026. On January 14, Truist raised its price target on BNY Mellon to $136 from $134 and maintained a Buy rating after its Q4 2025 earnings results. The firm also raised its 2027 EPS forecast by $0.15 to $9.55, a sentiment driven by a stronger outlook for fees and net interest income. While the firm noted a slight headwind from higher expenses and a slower pace of share buybacks, the overall growth in core revenue is expected to drive higher profitability.

Morgan Stanley also increased its price target for BNY Mellon to $132 from $124, while keeping an Overweight rating. This adjustment followed the bank’s impressive 27.4% ROTCE and its 8th consecutive quarter of positive operating leverage. The firm also pointed to an optimistic 2026 outlook, which anticipates an additional increase in operating leverage of over 100 basis points.

Truist Expects Core Revenue Growth to Drive BNY Mellon (BK) Profitability Despite Expense, Buyback Headwinds

Additionally, BofA increased its price target for The Bank of New York Mellon Corporation (NYSE:BK) to $142 from $140 while reiterating a Buy rating. The firm suggested that the combination of Q4 2025 performance and management’s guidance should support investor confidence.

The Bank of New York Mellon Corporation (NYSE:BK) provides a range of financial products and services in the US and internationally. It operates through four segments: Securities Services, Market & Wealth Services, Investment & Wealth Management, and Other.

While we acknowledge the potential of BK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BK and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.