BNY Shares Rally – What’s Driving Retail Optimism?

BNY posted a rise in its Q4 profit helped by higher net interest income and a rally in the equities market that raised the value of the assets of the clients it manages.

• The company posted a profit of $2.02 per share in the quarter, compared with analyst estimates of $1.99 per share.
• BNY’s CEO said that the company's multi-year transformation strategy is working and the pace of progress and the earnings to date demonstrates that. 
• Earlier, Barclays raised the firm's price target on BNY Mellon to $143 from $120 and kept an ‘Overweight’ rating on the shares. 

Shares of The Bank of New York Mellon Corporation rallied on Tuesday as the company's upbeat fourth quarter (Q4) earnings buoyed retail trader sentiment. 

The company posted a rise in its Q4 profit helped by higher net interest income and a rally in the equities market that raised the value of the assets of the clients it manages. The company posted a profit of $2.02 per share in the quarter, compared with analyst estimates of $1.99 per share. 

“Three years ago, we embarked on a multi-year transformation of BNY. Two years ago, we communicated our strategic roadmap and a set of medium-term financial targets for what we viewed as the first, foundation-setting phase of that work. The pace of progress and our results to date demonstrate that the strategy is working,” said CEO Robin Vince.

Shares in the company were up nearly 2% at the time of writing. 

AI Push

BNY and Google Cloud earlier announced the integration of Gemini Enterprise, Google Cloud's agentic AI platform, into BNY's enterprise AI platform Eliza. 

The integration is aimed at advancing Eliza's agentic deep research capabilities for market analysis and equipping the company's global workforce with access to multimodal features. BNY's employees are expected to build AI agents to quickly process, synthesize, and analyze extensive financial reports, relevant data, and historical trends to extract insights and navigate complex financial information more efficiently.

Analyst Action

Barclays raised the firm's price target on BNY Mellon to $143 from $120 and kept an ‘Overweight’ rating on the shares. The firm adjusted ratings and price targets in the large cap bank group as part of its 2026 outlook. Barclays expects the trends that drove double-digit earnings growth and bank stock outperformance in 2025 to carry into 2026.

Citi raised the firm's price target on BNY to $120 from $113 and kept a ‘Neutral’ rating on the shares. The firm upped price targets for the custody banks ahead of the Q4 report. 

How Did Stocktwits Users React?

Retail sentiment around BK trended in ‘neutral’ territory amid ‘high’ message volume. 

BK shares have risen 63% over the past year. 

One user called its fourth quarter earnings as ‘strong and steady’ and predicted the stock to reach the $120-$125 range.