What Are Wall Street Analysts' Target Price for Northern Trust Stock?
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Northern Trust Corporation (NTRS), a Chicago-based financial holding company with a market capitalization of $21.6 billion, specializes in wealth management, asset servicing, asset management, and banking solutions tailored to corporations, institutions, families, and individuals.
Shares of the top asset management company have outperformed the broader market considerably over the past year. NTRS has gained 43.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31%. In 2024, NTRS’ stock rose 29.7%, compared to SPX’s 25.2% rise on a YTD basis.
Narrowing the focus, NTRS slightly lags behind the Financials Select Sector SPDR Fund (XLF), which has gained about 43.8% over the past year and 34.9% in 2024.
On Oct. 23, Northern Trust released its third-quarter earnings, and its shares jumped 7%. It reported a 42% surge in profit, driven by an 8% increase in investment and servicing fees to $1.2 billion and a 23% rise in assets under custody or administration to $17.4 trillion. Net income reached $464.9 million ($2.22 per share), up from $327.8 million ($1.49 per share) last year. Net interest income jumped 21% to $569.4 million, while foreign exchange trading income rose 4% to $54.1 million.
For the current fiscal year, ending in December, analysts expect NTRS’ EPS to grow 19.8% to $7.49 on a diluted basis. The company’s earnings surprise history is solid as it beat the consensus estimate in each of the last four quarters.
Among the 14 analysts covering NTRS stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, one “Moderate Buy,” nine “Holds,” one “Moderate Sell,” and two “Strong Sell.”
The current consensus is less bullish than two months ago when two analysts gave the stocks a “Strong Buy.”
On Nov. 14, Wells Fargo & Company (WFC) raised Northern Trust's price target to $110 from $108, maintaining an “Equal-Weight” rating. The firm highlights a potential regulatory shift post-U.S. election, improved EPS estimates, and increased flexibility for capital returns and mergers as key drivers.
While NTRS currently trades above its mean price target of $105.27, the Street-high price target of $115 suggests an upside potential of 5.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
