Truist Securities Upgrades State Street (STT) Stock to Buy, Increases PT

On May 28, Truist Securities analyst David Smith upped the rating on State Street Corporation (NYSE:STT)’s stock from “Hold” to “Buy,” increasing its price objective to $112 from the prior target of $85.

An executive in a suit and tie at a meeting discussing asset management strategies.

The analyst opines that State Street Corporation (NYSE:STT) remains well-placed to gain the most among other trust banks from the positive momentum in the broader equity markets. This is because of its Assets Under Custody/Assets Under Administration (AUC/AUA) mix as well as ETF and asset management operations.

As rate futures rise, State Street Corporation (NYSE:STT)’s disclosed asset sensitivity is expected to act as a catalyst for the company to recover, added the analyst. Investment Servicing AUC/A (Assets under Custody and/or Administration) as of the end of Q1 2025 rose 6% to $46.7 trillion.

This was mainly because of higher quarter-end market levels and flows. During the quarter, State Street Corporation (NYSE:STT) saw continued ETF momentum and market share gains in the US Low-Cost ETF suite. Furthermore, it witnessed inflows throughout fixed-income, gold, and EMEA products. With the help of broad-based YoY fee revenue growth and continued expense discipline, State Street Corporation (NYSE:STT) achieved positive fee and total operating leverage in Q1 2025.

State Street Corporation (NYSE:STT) provides financial services, including investment servicing, investment management, and investment research and trading.

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Disclosure: None.