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Research Alert: CFRA Keeps Hold Opinion On Shares Of Northern Trust Corp.

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target by $9 to $171, using a wider equity risk premium and forward P/E of 15.5x, a premium to the three-year historical average on operating earnings of 14.9x and five-year average of 15.1x. We raise our 2026 EPS estimate by $1.50 to $11.00 and 2027's by $1.40 to $11.75 on projected revenues of $8.8B (prior $8.6B) and $9.3B (8.9B), respectively. Shares have a dividend yield of 2.0%, and their 1.24 beta means they have slightly higher price volatility than the equity market. We think the bank's key metrics to drive shareholder value are organic revenue growth and wider margins. NTRS did not provide earnings guidance for Q2 2026 or full-year 2026. The bank raised its full-year NII outlook to mid-single-digit Y/Y growth. We like that AUM continues to grow with elevated equity markets and new inflows in both Asset Servicing and Wealth Management segments. Pretax margins continue to widen to 32% in Q1 2026 from 27.1% a year ago. NTRS bought back $359M and paid $151M in dividends in Q1 2026.

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Research Alert: CFRA Keeps Hold Opinion On Shares Of Northern Trust Corp. | FINWIRES