Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, December 2, 2022

Article Excerpt

STATE STREET CORP., $77.72, New York symbol STT, remains a buy. The company sells accounting and administrative services to operators of mutual funds and pension plans. In 2021, State Street agreed to buy the investor services division of Brown Brothers Harriman & Co. for $3.5 billion. That firm provides custody, administration and other services to mutual fund operators and financial institutions. However, the company has had trouble winning regulatory approval for the purchase. As a result, State Street and Brown Brothers have agreed to cancel the deal. Under the terms of the agreement, neither company is required to pay a termination fee. Even without this purchase, State Street’s long-term outlook is bright. The company continues to attract new clients, and its fee income (based on the value of the assets it administers) should benefit from the recent rise in stock market values. State Street can also use the cash earmarked for the acquisition to keep rewarding investors. It plans to buy back $1 billion of…