Bank of New York Mellon stock falls after BofA Securities analyst turned bearish

<p>The share of Bank of New York Mellon Corp. BK, -1.65% fell 1.7% on Friday morning, to underperform its peers in the financial sector, after BofA Securities analyst Michael Carrier turned bearish on the bank holding company, so as the pressure continues to lows Interest rates and moderation in deposits should reduce future returns. The carrier lowered that rating to underperform against Neutrality, and lowered its share price target to $ 39 from $ 42. According to him, the income environment looks “difficult” and will likely continue to weigh on valuation. “We are waiting [net interest income] to remain under pressure given low short-term rates and our expectation of moderation in deposit balances, while we also expect fee waivers to be ongoing, ā€¯Carrier wrote in a note to clients. we expect some pressure on fixed income flows, as well as yields, particularly if mid / long term rates continue to rise gradually. The stock, which has lost 4.7% in a four-day streak, has lost 24.8% since the start of the year. Meanwhile, the SPDR Financial Select Sector ETF XLF, -0.87%, down 0.9% on Friday, lost 11.7% this year and the S&P 500 SPX, -0.17%, gained 10.6 %.