-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price by $15 to $145, applying a forward P/E of 15.6x our 2026 earnings estimate compared to the three-year historical average at 15.4x. We have a reasonable stand on valuation given we see low- to mid-digit total net revenue growth ahead. Assuming wider margins with AI efficiencies, we increase our 2026 EPS estimate by $0.90 to $9.30 and 2027's by $0.40 to $9.65 compared to the current consensus at $8.41 and $9.46, respectively. As the leading custody bank, we see elevated equity markets driving higher transaction fees, asset servicing fees, and issuer services fees in 2026. One of the benefits of higher volumes is driving wider operating margins, even with moderate Y/Y revenue growth. In Q1 2026, BK returned $1.4B of capital to shareholders, including $376M of dividends and $983M of share repurchases. Our financial outlook supports dividend growth and share repurchases. The timing of dividend increases follows the Fed June bank stress tests.