Analyst Note| Rajiv Bhatia, CFA |
Wide-moat State Street reported a solid start to 2021 though interest-rate headwinds continue to weigh on the firm. Revenue for the quarter was $2.95 billion, 2% above the FactSet consensus of $2.88 billion. Adjusted earnings per share of $1.47 also beat the consensus of $1.35. State Street is benefiting from market appreciation and client trading volumes. As we tweak our capital structure and servicing fee estimates, we are increasing our fair value estimate to $76 from $70.