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Bank of New York Mellon may see share price boost-Barron's
November 4, 2012 / 11:25 PM / 5 years ago

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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