NEW YORK—Deutsche Bank downgraded Northern Trust Corp. late Sunday, saying any benefits from recent Federal Reserve rate cuts have already helped the company.
Analyst Mike Mayo cut his rating to "Hold" from "Buy," and kept an $80 price target, implying he expects the stock to rise about 4 percent over Friday's $76.70 close.
The Federal Reserve has cut interest rates six times in the past year. The moves helped Northern Trust's net interest margins expand by about 0.1 percent, yet the company has seen the "bulk of benefits" from the Fed's moves, Mayo said.
Additionally, Chicago-based Northern Trust -- which has not followed the industry trend to acquire or be acquired -- does not have any savings from a potential tie-up deal to fall back on, he said.
"While we have not adjusted our numbers to reflect these concerns we note a negative bias to our estimates," Mayo said in a note to clients.
Shares closed Friday at $76.70.
