TD Cowen has raised its 12-month price target for Northern Trust (NASDAQ:NTRS) to $175.00 from $165.00 and maintained a Buy rating on the financial services firm. At the time of the update Northern Trust shares were trading around $148.98. InvestingPro Fair Value estimates deem the stock to be fairly valued at current levels, yet TD Cowen's revised target indicates material upside relative to the prevailing market price.
The analyst upgrade follows the company's fourth-quarter 2025 core earnings per share of $2.62, which outperformed consensus. TD Cowen attributed this beat to stronger pre-tax pre-provision income alongside a reduction in provision expense. Over the last twelve months Northern Trust reported diluted EPS of $8.74; analysts project $9.00 in earnings per share for fiscal 2026.
TD Cowen highlighted that momentum is building in Northern Trust's fee businesses and that the firm has shown disciplined execution on expense management, elements the research house views as supportive for a positive 2026 outlook. InvestingPro data referenced by the research firm shows Northern Trust producing a 14% return on common equity despite ongoing pressure on profit margins.
The analyst note also drew attention to the bank raising its medium-term targets for pre-tax margin and return on equity. TD Cowen interpreted these revised targets as evidence of strengthened confidence in the company's longer-term profitability trajectory.
Financials reported for the trailing twelve months include revenue of $8.09 billion and net income of $1.68 billion. Northern Trust's suite of services covers wealth management, asset servicing, asset management and banking solutions for corporations, institutions, families and individuals. The company carries a market valuation of $27.77 billion, trades at a price-to-earnings ratio of 17.08 and yields 2.15% in dividends. The firm has maintained dividend payments for 56 consecutive years.
InvestingPro subscribers are offered a detailed Research Report on Northern Trust within a broader coverage universe of more than 1,400 U.S. equities, and can access additional insights including six supplemental ProTips on the company's financial health.
In related analyst activity, Northern Trust's fourth-quarter 2025 results exceeded expectations on both the top and bottom lines. The company reported GAAP earnings per share of $2.42, ahead of the $2.36 estimate, and revenue of $2.14 billion versus the $2.06 billion forecast.
Following these results, RBC Capital raised its price target for Northern Trust to $159 while maintaining an Outperform rating, citing robust revenue growth and favorable operating leverage. Evercore ISI also lifted its target to $155 from $142 and kept an In Line rating, noting improving momentum across the company's business segments. Both firms' adjustments underscore growing analyst confidence in Northern Trust's recent performance and financial position.
Taken together, the revisions in analyst targets and the stronger-than-forecast quarterly metrics frame a market narrative of improved business momentum and tighter cost control at Northern Trust. The firm's updated medium-term objectives for margins and return on equity appear central to TD Cowen's decision to raise its price objective.