M&T Bank
M&T Bank Corp. (NYSE: MTB) ranks 12th among the country’s regional banks and operates more than 1,000 branches since its merger last April with People’s United. The bank’s share price has dropped by 27.5% over the past 12 months, including a drop of nearly 20% so far in 2023. Some 85% of the bank’s stock is owned by institutional investors who favor its high dividend.
Analysts have adopted a wait-and-see attitude on the stock, with 11 of 22 having a Hold rating and the other 11 with Buy or Strong Buy ratings. At a share price of around $115.00, the upside potential based on a median price target of $155.00 is 34.8%. At the high target of $190.00, the upside potential is 65.2%.
The consensus first-quarter revenue estimate is $2.38 billion, down 5.3% sequentially and up 64.1% year over year. Adjusted EPS are estimated to come in at $3.96, down 12.1% sequentially and up 45.1% year over year. Analysts are looking for full-year revenue of $9.37 billion, up 14.6%, and EPS of $16.60, up 26.4%.
M&T stock trades at 6.9 times expected 2023 EPS, 7.0 times estimated 2024 earnings of $16.37 and 8.8 times estimated 2025 earnings of $13.11 per share. The stock’s 52-week range is $110.00 to $193.42. The bank pays an annual dividend of $5.20 (yield of 4.43%). Total return for the past year was negative 26.18%.
State Street
Asset manager and trust bank State Street Corp. (NYSE: SST), the issuer of the SPDR ETFs, has shed about 5% from its share price over the past 12 months, better than the 7.2% share price decline posted by BlackRock, the world’s largest asset management firm. State Street’s servicing and management fees, coupled with limited credit risk and strong balance sheets, make the company even more attractive to institutional owners who hold more than 98% of the float.
Of 18 analysts covering State Street, eight rate the stock a Buy or Strong Buy, and 10 have Hold ratings. At a share price of around $78.40, the upside potential based on a median price target of $90.00 is 14.8%. At the high price target of $104.00, the upside potential is 32.7%.
For the first quarter of fiscal 2023, the consensus estimate calls for revenue of $3.13 billion, down 0.83% sequentially but up 1.6% year over year. Adjusted EPS are forecast at $1.64, down 20.6% sequentially and 3.1% higher year over year. For the full fiscal year, State Street is expected to report EPS of $8.33, up 12.4%, on revenue of $12.64 billion, up 4%.
Shares trade at 9.4-times expected 2023 EPS, 8.7 times estimated 2024 earnings of $9.01 and 7.8 times estimated 2025 earnings of 10.03 per share. State Street’s 52-week range is $58.62 to $94.73. The bank pays an annual dividend of $2.52 (yield of 3.22%), and the total return for the past year was negative 1.3%.
Originally published at 24/7 Wall St.
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