Evercore Partners Downgrades Northern Trust (NTRS) to Underweight

Evercore Partners downgraded Northern Trust (NASDAQ: NTRS) from Equal Weight to Underweight with a price target of $57.00 (from $59.00) following Q2 results, based on less expense leverage, operating margin lift tougher going fwd given still mixed rev picture with ongoing NIM pressure (ex- likely premium amort reversal NT), capital wrinkle where view materially lower post final Fed rules using standardized approach, and valuation (shares expensive trading at 19x our '13 EPS, a premium to peers, the market, and hist rel levels).

Analyst Andrew Marquardt states, "While upside to norm EPS remains meaningful, we think far off given need higher short rates. Our '13 EPS goes to $3.06 (from $3.17), '14 to $3.29 (from $3.48), and '15 to $3.61 (from $3.81) based on higher expenses, slightly lower spread, and lower buybacks, mitigated by modestly better fees. Our new PT of $57 (from $59)"

For an analyst ratings summary and ratings history on Northern Trust click here. For more ratings news on Northern Trust click here.

Shares of Northern Trust closed at $59.41 yesterday.

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