Bank of New York Mellon may see share price boost-Barron's
NEW YORK Nov 4 (Reuters) - Bank of New York Mellon could potentially see a share price increase if interest rates rise and boost its revenue, according to a report in the Nov. 5 issue of Barron's.
A single percentage point rise in short rates would immediately add nearly $500 million to the bank's pretax revenue according to the story, which also noted that the stock has fallen 50 percent in the last five years to $25.
On top of this, Bank of New York Mellon does not have the credit and balance-sheet risks of normal commercial banks, Hampton McFadden, a principal shareholder Vulcan Value Partners told Barron's.
He thinks the stock could be worth $40 over a three-year period, according to Barron's.
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