JPMorgan upgrades Northern Trust to neutral from underweight as trust banks hold up better than regional banks

JPMorgan analyst Vivek Juneja on Monday upgraded Northern Trust Corp.
NTRS,
-0.93%
to neutral from underweight, with a price target of $96.50 a share. Northern Trust should gain deposits in its wealth management business amid turmoil in the regional banking sector, Juneja said in a research note. It’s also seeing a positive turn in its money market funds business in a rebound from market share losses in recent years, Juneja said. Its current valuation is in line with its average historical premium to its peers, which is why JPMorgan is neutral on the stock. “Trust bank stocks are also still trading well below long term averages and valuations remain attractive,” Juneja said. “Near term, we expect all trust bank stocks to hold up well and would recommend this sector into earnings.” JPMorgan is also neutral on Bank of New York Mellon Corp.
BNY,
+0.19%
and State Street
STT,
+0.75%.