JP Morgan Overweight on BNY Mellon (BK) with a Target Price of $128.50

The Bank of New York Mellon Corporation (NYSE:BK) is 1 of the 10 Best Bank Stocks to Buy successful 2026.

JPMorgan raised its people terms connected BNY Mellon by 2.8% to $128.50 (from $125.00), portion reiterating the firm’s Overweight telephone connected the stock. This TP update comes arsenic the steadfast updated its fiscal models for large-cap banks, pursuing the merchandise of Q4 2025 earnings. In its different slope TP updates, the steadfast noted that it prefers the banking assemblage for this marketplace cycle.

BNY Mellon released its Q4 2025 connected January 13, which was headlined by 26.3% YoY maturation successful nett income attributable to communal shareholders (from $1.1 cardinal to $1.4 billion). On a per diluted stock basis, net grew 31.2% YoY to $2.02 (from $1.54). The beardown net maturation yielded a 230-basis constituent YoY summation successful the bank’s instrumentality connected mean communal equity to 14.5% (from 12.2%).

Unlike astir of the banks connected this list, which relied connected nett involvement income, BNY Mellon’s net maturation was driven by a 5.3% YoY summation successful interest gross (more commonly called non-interest income successful astir banks) to $3.7 cardinal (from $3.5 billion). Virtually each the $0.2 cardinal interest maturation is attributable to the 8.0% YoY maturation successful concern services fees to $2.6 cardinal (from $2.4 billion). The different segments, specified arsenic concern absorption and performance, overseas exchange, and different fees, were either level oregon declined YoY.

While not arsenic salient arsenic successful different banks, nett involvement income (NII) besides contributed to the growth, increasing 12.7% YoY to $1.3 cardinal (from $1.2 billion). NII maturation was driven mostly by an enlargement of the earning plus basal (+8% YoY to $387 billion) and supplemented by a humble enlargement successful nett involvement borderline (+6 ground points YoY to 1.38%).

For 2026, the bank’s absorption is targeting 5%+ YoY gross growth, coupled with 3%-4% YoY maturation successful non-interest expenses. These targets would construe to 7%-9% YoY pre-tax income growth.

The Bank of New York Mellon Corporation (NYSE:BK) is simply a planetary fiscal services institution that offers securities, market, and concern and wealthiness absorption services, serving 90%+ of Fortune 100 companies. The institution is based successful New York City, New York, and was founded successful June 1784.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.