Friday, January 21, 2011

Northern Trust's (NASDAQ:NTRS) Forward Estimates Too High Says Jefferies (NYSE:JEF)

While Jefferies acknowledges Northern Trust (NASDAQ:NTRS) has a loyal shareholder base and solid capital ratios, they believe the company is too optimistic on their forward estimates.

Margins for Northern Trust are also under pressure, as lower LIBOR and loan modifications are shrinking them.

With no known catalysts to hang their hat on, Jefferies lowered their full year 2011 and full year 2012 EPS estimates from $3.20 and $3.80 to $2.95 and $3.60.

Jefferies maintains their "Hold" rating on Northern Trust (NTRS), which closed Thursday at $52.91, up $0.42, or 0.80 percent. Jefferies has a price target of $61 on Northern, increasing it from $58.

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