Vining Sparks Sticks to Its Buy Rating for BNY Mellon (BK)

By Ryan Adsit

In a report released today, Marty Mosby from Vining Sparks maintained a Buy rating on BNY Mellon (BKResearch Report), with a price target of $55. The company’s shares opened today at $53.06.

Mosby observed:

“BK is the only one of our Large Cap U.S. Banks that we currently do not rate “Strong Buy”. Over the recent collapse in financial services valuations, BK outperformed the other two 10 percentage points, or more. Given what we believe to be temporary earnings headwinds at the other two Trust Banks we believe this investment rotation should begin to reverse through 2019, limiting BK ’s total return potential to its YOY growth in tangible book value plus its current dividend yield, about 7%.”

According to, Mosby is a 5-star analyst with an average return of 12.0% and a 61.3% success rate. Mosby covers the Financial sector, focusing on stocks such as Fifth Third Bancorp, Regions Financial, and State Street Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for BNY Mellon with a $56.50 average price target, which is a 6.5% upside from current levels. In a report issued on January 8, Morgan Stanley also maintained a Buy rating on the stock with a $57 price target.

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Based on BNY Mellon’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $4.99 billion and net profit of $876 million. In comparison, last year the company earned revenue of $4.17 billion and had a net profit of $1.17 billion.

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The Bank of New York Mellon Corp. is a bank holding company, which engages in the provision of financial services. It operates through the following segments: Investment Management, Investment Services, and Other.