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State Street Corporation STT

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Solid Client Pipeline and Market Appreciation Boosting State Street’s Outlook

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

State Street reported decent second-quarter financial results, with revenue of $3.03 billion and adjusted EPS of $1.88, beating the FactSet consensus of $2.94 billion and $1.79, respectively. The firm’s guidance is encouraging, as full-year fee revenue outlook came in above our expectations. In addition, net interest income is expected to be $460 million-$470 million in the third and fourth quarter, roughly flat from the $467 million in the second quarter, which to us indicates that net interest income may be close to finding a bottom. We expect to modestly raise our $77 fair value estimate and will maintain our wide moat rating.

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Company Profile

Business Description

State Street is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With approximately $38.8 trillion in assets under custody and administration and $3.5 trillion assets under management as of Dec. 31, 2020, State Street operates globally in more than 100 geographic markets and employs more than 38,000 worldwide.

Contact
One Lincoln Street
Boston, MA, 02111
T +1 617 786-3000
Sector Financial Services
Industry Asset Management
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 39,146

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