State Street Corp. STT stock was down 2% in premarket trade on Monday as KBW downgraded the trust bank to market perform from outperform and cut its price target to $73 a share from $84 a share. KBW analyst Michael Brown said the bank lowered its outlook for net interest income to fall by 12% to 18% during in the third quarter and another 2% to 6% in the fourth quarter. The company also expects fee revenue to drop by 1% to 1.5% in the third quarter. “With less visibility and confidence in STT’s fundamental outlook, and modest upside to our lowered price target, we are downgrading STT,” Brown said in a research note. The stock fell 12% on Friday when it released its second-quarter results.
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