What Are Wall Street Analysts' Target Price for State Street Stock?

Core Viewpoint - State Street Corporation (STT) has demonstrated strong performance in the financial sector, significantly outperforming the broader market and its peers over the past year, driven by robust fee income and strategic investments in technology and private markets [2][6]. Company Overview - State Street Corporation, headquartered in Boston, Massachusetts, offers a variety of financial products and services to institutional investors globally, with a market capitalization of $36.8 billion [1]. Stock Performance - STT shares have increased by 33.5% over the past year, while the S&P 500 Index has risen by 14.4% during the same period [2]. - In 2026, STT stock is up 2%, outperforming the S&P 500's 1.4% increase year-to-date [2]. - Compared to the Financial Select Sector SPDR Fund (XLF), which gained about 2.3% over the past year, STT's performance is notably stronger [3]. Financial Performance - For Q4, STT reported revenue of $3.7 billion, reflecting a year-over-year increase of 7.5% [7]. - The adjusted EPS for the quarter was $2.42, a decrease of 1.6% from the previous year [7]. - Analysts project a 12.1% growth in STT's EPS for the current fiscal year, expecting it to reach $11.55 on a diluted basis [7]. Analyst Ratings - Among 19 analysts covering STT, the consensus rating is a "Moderate Buy," which includes eight "Strong Buy" ratings, three "Moderate Buys," seven "Holds," and one "Moderate Sell" [8]. Growth Drivers - The company's growth is attributed to strong fee income from investment services and asset management, along with improvements in operating leverage [6]. - STT has launched new digital asset platforms and experienced double-digit growth in private markets servicing fees, although there was a decline in software and processing fees due to a transition to cloud-based solutions [6]. - CEO Ron O'Hanley highlighted that investments in AI, digital transformation, and private markets expansion are expected to drive medium-term growth, with productivity savings mitigating most cost increases [6].