Barclays Raises Price Target#
Barclays has increased its price target for Northern Trust stock (NASDAQ:NTRS) from $160 to $176 while keeping an Equalweight rating. This adjustment reflects the company’s strong earnings performance, particularly in fees and net interest income, which surpassed expectations.
Earnings Performance#
Northern Trust reported earnings per share (EPS) of $2.71 for the first quarter of 2026, significantly exceeding analysts’ expectations of $2.32. This 16.81% surprise indicates the company’s robust financial health. Additionally, Northern Trust's revenue was reported at $2.21 billion, higher than the anticipated $2.12 billion, showcasing effective management and strategic growth.
Key Financial Metrics#
Despite a slight decline in net interest margin by 6 basis points, Northern Trust's expenses aligned with estimates. The firm also benefited from a lower tax rate and a provision benefit, which contributed positively to its earnings. Average deposits rose by 5%, while private equity balances decreased by 2%. However, net interest-bearing deposits saw a 7% increase, indicating strong customer confidence.
Future Outlook#
Looking ahead, Northern Trust has raised its forecast for net interest income growth for 2026 to mid-to-high single digits, up from low-to-mid single digits. This optimistic outlook suggests that the company is well-positioned for continued growth, further enhancing its appeal to investors. The positive reception of these results in the market underscores the significance of exceeding financial expectations.