Truist has downgraded BNY Mellon from “Buy” to “Hold” while raising the price target to $97. This reflects the stock’s sharp rally over the past year, which has surpassed prior expectations and brought it near perceived fair value. With shares up over 50% in 12 months, much of the near-term growth appears already priced in.
📌 BNY Mellon has benefited from strong quarterly earnings, solid net interest revenue, and disciplined expense controls. These elements helped the stock reach an all-time high of $90.51, reinforcing investor confidence in its operational strength and balance sheet stability.
📌 The bank maintains a steady dividend profile with a quarterly payout of $0.47 per share, totaling $1.88 annually. This translates to a dividend yield of approximately 2.1%, backed by a conservative payout ratio of around 30%. Dividend growth has been consistent over the last decade, reflecting a long-term commitment to shareholder returns.
📌 Although the fundamentals remain solid, Truist’s downgrade reflects a more cautious stance given current valuation levels. Investors may prefer to wait for a better entry point or potential catalysts that could drive the next leg of growth.