UBS analyst Brennan Hawken upgraded BNY Mellon to Buy from Neutral with a price target of $55, up from $46. The analyst sees net interest income stabilization and improved cost control driving better than expected earnings growth in the near-term. BNY largely through its investment cycle, which should contain expense growth and lead to positive surprises, Hawken tells investors in a research note. In addition, the analyst sees less environmental pressure on the company's deposit growth now that the Federal Reserve is adding reserves to the banking system.

Argus analyst Stephen Biggar keeps a Buy rating and $67 price target on BNY Mellon after its Q1 earnings beat but raises its FY24 EPS view to $5.49 from $5.16 and its FY25 forecast to $5.97 from $5.69. Fee revenue growth for the company has resumed in 2024, supported by a healthy pipeline of mandates, even though its net interest income is expected to turn down about 10% on continued deposit pricing pressures, the analyst tells investors in a research note. An improving pre-tax margin and ROTCE should also aid the price-earnings multiple for BNY Mellon shares, Argus added.