Eaton Vance Still Unattractive To Citi
In a recent report from Citi (NYSE: C), analysts are encouraged by the filling of Eaton Vance's (NYSE: EV) head of institutional business with Scott Ruddick, as well as the promotion of Matthew Witkos to oversee the firm's overall global distribution. Citi added that the stock screens expensively, as a number of stocks in the sector are being “squeezed higher”.
Even with the filling of the positions, Citi sees Franklin Resources (NYSE: BEN) and T. Rowe Price (NASDAQ: TROW) as better plays relative to EV, due to superior flow, strategic positioning, and balance sheet leverage at cheaper valuation, with TROW mathematically more levered to equities updraft given assets under management mix vs. EV.
Citi retains a Sell rating on EV but raises the price target $2 to $25 because of higher sector multiples and reduction of institutional risk. If market conditions improve greater than anticipated or if organic growth is higher than expectations the stock may outperform the target.
EV closed Monday at $29.17
TROW closed Monday at $49.88
BEN closed Monday at $105.20
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