- In a recent legal development, a federal court in Texas denied motions to dismiss an antitrust lawsuit brought by the State of Texas against State Street, Blackrock, and Vanguard, allowing claims that the firms conspired to restrict coal production in pursuit of green energy goals to proceed to discovery.
- This decision significantly raises legal risk and potential exposure for State Street, as the case could result in substantial financial penalties if the allegations are upheld.
- We'll look at how the court's decision to advance this high-profile antitrust case might impact State Street's long-term earnings and risk profile.
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State Street Investment Narrative Recap
To be a shareholder in State Street today, you need to believe in its resilience as a core player in global asset servicing and ETF management, even amid change and legal scrutiny. The recent Texas court decision allowing antitrust claims to proceed represents a real short-term risk, introducing legal uncertainty that could affect near-term sentiment, yet core catalysts like ETF inflows and asset growth remain intact for now.
Of particular interest is State Street’s recent launch of eleven Select Sector SPDR Premium Income Funds, which reinforces its central role in the growth of passive and income-focused sector investing. This ongoing product innovation continues to align with organic fee revenue growth, despite legal headwinds and market pressure.
Yet, in contrast to these new product launches, investors must also keep an eye on how unresolved legal challenges may expose the business to expanding reputational or financial risks that ...
Read the full narrative on State Street (it's free!)
State Street's narrative projects $14.6 billion revenue and $3.4 billion earnings by 2028. This requires 3.0% yearly revenue growth and an earnings increase of $0.8 billion from $2.6 billion.
Uncover how State Street's forecasts yield a $113.70 fair value, a 3% upside to its current price.
Exploring Other Perspectives
Seven members of the Simply Wall St Community estimate State Street’s fair value between US$48 and US$248,122 per share. While these opinions differ widely, recent legal developments put regulatory risk at the forefront and may prompt you to explore diverse outlooks before forming a view on the company’s prospects.
Explore 7 other fair value estimates on State Street - why the stock might be a potential multi-bagger!
Build Your Own State Street Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your State Street research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
- Our free State Street research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate State Street's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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