After a 3% Pullback Last Week, What’s Next for Bank of New York Mellon Stock?

Nikko Henson3 minute read
Reviewed by: Thomas Richmond
Last updated Jan 21, 2026

Key Stats for Bank of New York Mellon Stock

  • Past-week performance: -2.6%
  • 52-week range: $70 to $126
  • Valuation model target price: $146.62
  • Implied upside: 21.5% over ~2.9 years

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What Happened?

The Bank of New York Mellon Corporation stock fell about 2.6% over the past week, trading lower through most sessions and finishing near $120/share, toward the lower end of its recent trading range.

The pullback came as new data showed a sharp decline in short interest, indicating that a large portion of bearish positioning had already been unwound following the stock’s strong run into January.

BK had recently traded near its 52-week high, and the reduction in short positioning removed a source of incremental buying pressure that had previously been present in the stock.

With no new company-specific catalysts during the week, shares drifted lower as trading activity normalized and investors consolidated gains after the rally, resulting in a quiet pullback rather than a sharp selloff.

Bank of New York Mellon stock
Bank of New York Mellon Guided Valuation Model

See analysts’ growth forecasts and price targets for Bank of New York Mellon (It’s free) >>>

Is Bank of New York Mellon Undervalued?

Under valuation model assumptions, the stock is modeled using:

  • Revenue Growth (CAGR): 4.6%
  • Operating Margins: 37.9%
  • Exit P/E Multiple: 13.0x

Based on these inputs, the model estimates a target price of $146.62, implying 21.5% total upside from the recent share price over about 2.9 years.

Looking ahead, performance ties closely to client cash balances and asset servicing activity, which directly influence both net interest income and recurring fee revenue across BK’s custody platform.

At the same time, expense discipline, operating leverage, and capital returns through dividends and share buybacks support earnings growth, even if revenue growth remains moderate.

At current levels, BK appears modestly undervalued, with returns driven by steady earnings growth and capital returns, while near-term performance depends on cash balances and servicing fees holding up.

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  2. Operating Margins
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From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

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