State Street: Maintaining Our Fair Value Estimate of $84; Tweaking Uncertainty Rating to Medium

We are maintaining our wide moat rating and $84 fair value estimate on State Street. As we calibrate our uncertainty ratings across our coverage universe, we are decreasing our Morningstar Uncertainty Rating to Medium from High. State Street’s asset-based revenue is sensitive to market movements, and net interest income can be difficult to value. That said, State Street has consistently generated high returns on tangible equity in a variety of operating environments, and we believe a Medium rating is more appropriate.