-- State Street (STT) is positioned for strong capital return activity in 2026 and 2027 given its robust capital levels and pipeline of new business, RBC Capital Markets said in a Friday note.
The company "continues to win new mandates for its products and services," with a business model that continues to yield strong profits as shown by its 20% return on tangible common equity in Q1, RBC said. State Street also achieved new records for revenue and assets under management in Q1, the brokerage noted.
State Street reported Q1 earnings Friday of $2.49 per diluted share, compared with $2.04 a year earlier, as revenue increased to $3.80 billion from $3.28 billion. According to RBC, the company raised its 2026 outlook across all key financial metrics to reflect the Q1 results and ongoing organic momentum.
RBC also raised its 2026 and 2027 EPS estimates for the company, now expecting $12.20 in 2026 EPS from $11.85 and $13.30 in 2027 EPS from $13.05.
RBC lifted its price target on State Street to $155 from $135, with a sector perform rating.
Price: $149.11, Change: $+3.67, Percent Change: +2.53%