Jefferies Reports Another Round Of Downward Revisions On Northern Trust

According to Jefferies, Northern Trust (NASDAQ: NTRS) saw another round of downward revisions.

Jefferies said that it cut its estimates following another sizeable EPS miss to reflect a lower net interest margin and higher cost base. “Strong capital ratios and a loyal shareholder base limit downside somewhat, but the stock is not cheap at 15x our 2012 EPS estimate and negative revisions could continue to weigh on sentiment and the P/E multiple. We establish a $52/sh price target by applying a 16x multiple to our 2012 EPS estimate. Our target is 3x lower than the company's historical average, but at a relative premium to the S&P 500 P/E multiple, which is in line with the historical average. Risks to our price objective include lower market levels and a slower-than-expected decline in credit costs.”

Northern Trust closed yesterday at $52.19.