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Valued at $62.3 billion by market cap, New York-based Bank of New York Mellon Corporation (BK) holds the title of America's oldest bank in New York City. BNY provides various financial services and serves numerous institutions, corporations, government agencies, endowments, foundations, and HNIs globally.
The banking giant has significantly outpaced the broader market over the past year. BNY has soared 52% over the past 52 weeks and 14.5% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12.7% gains over the past year and a marginal 8 bps uptick in 2025.
Narrowing the focus, BNY has also outperformed the industry-focused SPDR S&P Bank ETF’s (KBE) 17.4% surge over the past year and a marginal 36 bps dip on a YTD basis.
BNY stock prices gained 1.4% after the release of its impressive Q1 results on Apr. 11. Driven by a solid 3% year-over-year increase in fee revenues to $3.4 billion and an impressive 11.4% surge in net interest income to $1.2 billion, the company’s overall topline for the quarter grew 5.9% year-over-year to $4.8 billion, exceeding the Street’s expectations by 1.3%. Meanwhile, the company’s adjusted EPS soared 22.5% year-over-year to $1.58, surpassing the consensus estimates by more than 6%. Furthermore, the company delivered an impressive ROE of 12.6% and ROTCE of 24.2%, boosting investor confidence.
For the full fiscal 2025, ending in December, analysts expect BNY to deliver a solid 11.4% year-over-year growth in adjusted EPS to $6.72. Moreover, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
Meanwhile, the stock holds a consensus “Moderate Buy” rating overall. Of the 17 analysts covering the stock, opinions include nine “Strong Buys,” three “Moderate Buys,” and five “Holds.”
This configuration is slightly less bullish than two months ago, when 10 analysts gave “Strong Buy” recommendations.
On Apr. 14, Truist Securities analyst David Smith reiterated a “Buy” rating on BNY, but lowered the price target from $90 to $87.
As of writing, BNY’s mean price target of $91.56 represents a modest 4.1% premium to current price levels, while the street-high target of $104 suggests a notable 18.3% upside potential.
