Northern Trust Corp

NTRS: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$59.00	Fjnr	Kqvjnfzff

Northern Trust Earnings: Choppy Trends, but Shares Undervalued

Rajiv Bhatia

Oct 18, 2023

Wide-moat Northern Trust reported a mostly in-line third quarter. Revenue of $1.74 billion and EPS of $1.49 were roughly consistent with the FactSet estimates of $1.74 billion and $1.50. Net interest income continues to decline and offers limited visibility, a factor weighing on the stock. Still, we think investors should not overreact to a volatile revenue item; we believe the firm’s wealth-management franchise continues to hold up. As a result, we are maintaining our $86 fair value estimate and believe the shares are attractive.

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