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State Street Corporation announced the official launch of its Middle East and North Africa Regional Headquarters in Riyadh, Saudi Arabia, after receiving approval from the Ministry of Investment Saudi Arabia, further solidifying its over 25-year presence in the region.
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This expansion, combined with a new minority investment in Coller Capital, a specialist in alternative investments, signals the company’s intent to boost its regional influence and strengthen its position in the fast-growing alternatives sector.
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We’ll consider how State Street’s move to establish its MENA headquarters sharpens its investment narrative around regional and alternatives growth.
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Owning State Street stock rests on believing in the company’s ability to grow fee-based revenue through global asset servicing while withstanding ongoing fee compression and new technology in financial services. The newly launched MENA headquarters signals a push into growth regions and alternatives but does not meaningfully change the biggest catalyst, rising global wealth and ETF inflows, or the main risk of accelerated fintech disruption and platform innovation shortfalls in the near term.
Of the recent developments, State Street’s launch of the SPDR Portfolio Ultra Short T-Bill ETF (SPTU) is closely related, as it underscores the company’s focus on broadening its product set to capture more inflows and reinforce recurring fee revenue, key to offsetting margin pressures and supporting its investment case around scale and efficiency.
Yet with pressure from new tech entrants still building, investors should also be aware that…
Read the full narrative on State Street (it’s free!)
State Street’s narrative projects $14.7 billion revenue and $3.5 billion earnings by 2028. This requires 3.3% yearly revenue growth and a $0.9 billion earnings increase from $2.6 billion currently.
Uncover how State Street’s forecasts yield a $130.36 fair value, a 10% upside to its current price.
Fair value estimates from six individual members of the Simply Wall St Community span a broad range, from US$48.13 to US$248,121.66. While growth in assets under custody remains a core catalyst, these varied views show just how differently some investors assess potential future performance.
Explore 6 other fair value estimates on State Street – why the stock might be a potential multi-bagger!
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