Bank of New York "sector perform," target price raised

04/03/06 - RBC Capital Markets

NEW YORK, April 3 (newratings.com) - Analyst Gerard Cassidy of RBC Capital Markets reiterates his "sector perform" rating on Bank of New York Co (BK). The target price has been raised from $31 to $34.

In a research note published on March 31, the analyst mentions that according to press reports, the company is in talks to sell its about 300 New York-based retail banking branches to JPMorgan Chase. The analyst expects the transaction to include a joint venture or asset swap agreement, rather than being all cash. Bank of New York’s prospects have improved and the company’s y/y operating leverage has become positive, RBC Capital Markets adds.