Is Wall Street Bullish or Bearish on State Street Stock?

Is Wall Street Bullish or Bearish on State Street Stock?

Thu, August 20, 2026 at 2:34 PM GMT+3 3 min read

Boston, Massachusetts-based State Street Corporation (STT) is a leading global financial services company that primarily serves institutional investors, including asset managers, pension funds, insurance companies, sovereign wealth funds, and other large financial institutions. With a market cap of $52.7 billion, the company provides investment servicing solutions such as custody, fund administration, accounting, and data and analytics, alongside investment management, trading, financing, and research services.

STT has been running well ahead of the pack. The stock has grown 67.2% over the past 52 weeks and 44% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 20.2% over the past year and risen 12.6% in 2026.

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Narrowing the focus, STT has also outperformed the State Street Financial Select Sector SPDR ETF (XLF), which climbed 9.3% over the past 52 weeks and 5% this year.

On July 16, State Street posted a blockbuster Q2 2026, but investors were seemingly unimpressed, sending STT shares down 1.7% in the next trading session. Total revenue rose 17.4% year over year to a record $4.05 billion, driven by a 17.2% increase in fee revenue to $3.19 billion and an 18% rise in net interest income to $860 million. Servicing fees increased 13%, management fees jumped 29%, FX trading services surged 26%, and securities finance revenue grew 19%. The bottom line was even stronger, with EPS soaring 68.2% to $3.65.

State Street also closed the quarter with record client assets, as assets under custody and/or administration climbed 18% to $57.86 trillion, while assets under management rose 23% to $6.28 trillion, benefiting from higher market levels, client flows, net new business, and net inflows.

For the current year ending in December, analysts expect STT's EPS to increase 33.5% year over year to $13.75. Moreover, the company has surpassed analysts' consensus estimates in each of the past four quarters.

Among the 18 analysts covering the stock, the consensus rating is a "Moderate Buy." That's based on 10 "Strong Buy" ratings, two "Moderate Buy," and six "Hold" ratings.

The configuration has grown more bullish than a month ago when the stock had nine "Strong Buy" suggestions.

On July 17, Citigroup analyst Emily Ericksen reiterated a "Buy" rating on State Street and raised her price target to $210 from $193, signaling 13.5% upside potential from the stock's then-current price.

STT's mean price target of $204.12 indicates a 9.9% premium over current market prices. Its Street-high target of $215 suggests a robust 15.7% upside potential from current price levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com