State Street shares fall amid market concerns

Shares of the Boston-based company fell $13.70, or 22.7 percent, to $46.56 in afternoon trading. The stock has ranged from $29.09 to $86.55 over the past year.

The broader markets sold off sharply ahead of a vote by the House on an unpopular $700 billion rescue plan for troubled financial companies. The Dow Jones industrial average fell about 300 points, while demand for safe-haven buying in government debt remained high ahead of the vote.

Investors were also examining a deal for Citigroup Inc. to acquire Wachovia's banking operations. Investors had been worried about Wachovia's stability as it grappled with mounting losses over souring mortgage debt.

UBS analyst Glenn Schorr maintained a "Buy" rating on State Street.

Despite the current turmoil, UBS analyst Schorr noted State Street has broad product and geographic offerings, limited credit risk and a sizable deposit base.

Schorr also noted the company raised $3 billion in the second quarters as an insurance policy.

To reflect a weaker backdrop, however, Schorr lowered his 12-month price target for the company to $76 from $83.

A representative from State Street was not immediately available for comment