Citigroup Analyst Cites Fair Valuation as Reason for Downgrade

  • BNY Mellon’s stock downgraded to neutral by Citigroup analyst Keith Horowitz
  • Strong Q2 earnings not enough for buy rating
  • Trading at 2.5 times tangible book value
  • Bank’s performance offset by increase in revenue-related expenses

Citigroup analyst Keith Horowitz downgraded BNY Mellon’s stock from ‘buy’ to ‘neutral’, despite the bank’s strong Q2 earnings. The stock is now trading at 2.5 times tangible book value, with the analyst citing fair valuation as the reason for the change. Despite the bank’s strong performance in net interest income and fees, an increase in revenue-related expenses offset this growth.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Bank of New York Mellon Corp.’s stock downgrade by Citigroup analyst Keith Horowitz. It includes relevant details about the bank’s second-quarter earnings, market valuation, and expectations for future profit growth. The article is not sensationalist or misleading, and there are no signs of personal perspective being presented as a universally accepted truth.
Noise Level: 6
Noise Justification: The article provides a brief analysis on Bank of New York Mellon Corp.’s stock downgrade and mentions some financial details, but it lacks in-depth information and does not offer much insight or actionable knowledge for the reader. It also seems to be more focused on reporting news rather than providing thoughtful analysis or new knowledge.
Public Companies: Bank of New York Mellon Corp. (BK)
Key People: Keith Horowitz (Citigroup analyst)

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Financial Relevance: Yes
Financial Markets Impacted: Bank of New York Mellon Corp.’s stock
Financial Rating Justification: The article discusses the downgrade of Bank of New York Mellon Corp.’s stock by Citigroup analyst Keith Horowitz and its impact on the bank’s market valuation, as well as the expectations for future profit growth. This is relevant to financial topics and impacts the company’s stock in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article. The content discusses a stock downgrade and its impact on Bank of New York Mellon Corp.’s stock performance.

Reported publicly: www.marketwatch.com