Northern Trust (NTRS) PT Raised to $115 at BofA Securities

BofA Securities analyst Ebrahim Poonawala raised the price target on Northern Trust (NASDAQ: NTRS) to $115.00 (from $103.00) while maintaining a Buy rating.

The analyst comments "3Q24 results topped expectations with core EPS of $2.01 handily beating BofA/consensus $1.68/$1.76 estimates driven by much stronger net interest income (NII; $569mn vs. $535mn/$534mn forecast). Mgmt. attributed higher NII to improved deposit mix-shift, stronger growth, and stabilizing non-interest bearing deposits. 4Q24 guide: NII $550-$560mn (balance sheet remains asset sensitive) and expense growth +2% QoQ (implies FY24e expense growth of 6.1% YoY). We revise 4Q24/FY25e EPS to $1.92/$7.58. PO to $115 from $103 driven by EPS revisions and roll forward of our 50% P/E and 50% P/TBV PO methodology to equal weight FY25/26e from FY25e only. We assign 16.5x/16.0x and 1.7x/1.6x multiples respectively (16.6x/1.4x prior). NTRS is trading at 13.6x 2025E P/E vs. 16.5x 5yr pre-pandemic median and 1.7x P/YE25e TBV vs. our forecast for a return on tangible common equity of ~14% for FY25/26. Our EPS forecast implies +2.3%/+13% YoY for FY25/26. Reiterate Buy rating."

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