JPMorgan Raises BNY Mellon Target to $128.50 After Q4 Surge
JPMorgan raised its price target on BNY Mellon by 2.8% to $128.50 and kept an Overweight rating after Q4 2025 large-cap bank model updates. BNY Mellon delivered 26.3% income growth to $1.4 billion, with 31.2% EPS of $2.02, driven by 5.3% fee revenue growth and a 12.7% NII increase.
1. JPMorgan Target and Rating Update
JPMorgan lifted its price target on BNY Mellon by 2.8% to $128.50, retaining an Overweight rating after updating its large-cap bank models in the wake of Q4 2025 results.
2. Q4 2025 Earnings Performance
BNY Mellon reported a 26.3% year-over-year rise in net income to $1.4 billion and a 31.2% jump in diluted EPS to $2.02, boosting return on average common equity to 14.5%.
3. Revenue Composition Drivers
Non-interest income increased 5.3% to $3.7 billion, led by an 8.0% jump in investment services fees to $2.6 billion, while net interest income grew 12.7% to $1.3 billion thanks to an 8% expansion in earning assets and a 6-basis-point rise in net interest margin to 1.38%.
4. 2026 Financial Outlook
Management targets more than 5% revenue growth and 3%–4% non-interest expense growth for 2026, aiming for 7%–9% year-over-year pre-tax income expansion.