UPDATE: Citi Downgrades State Street (STT) to Neutral

Citi analyst Keith Horowitz downgraded State Street (NYSE: STT) from Buy to Neutral, PT $93.00 (from $120.00).

The analyst comments "We are downgrading STT to Neutral (from Buy) as we believe that deposit betas will pressure NII through the hiking cycle and cause STT to become liability sensitive and we see less capital flexibility due to impact of near term OCI marks. We lower our TP to $93 (from $120). Our valuation embeds a 24% norm ROTCE (from 23%) and 11.6% COE (from 10.7%) reflecting more late-cycle discount rates as well as higher market risk exposure."

For an analyst ratings summary and ratings history on State Street click here. For more ratings news on State Street click here.

Shares of State Street closed at $84.17 yesterday.

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