UPDATE: Citigroup Resumes Buy, Cuts PT to $8 on WisdomTree Investments

Citigroup resumes its Buy rating on WisdomTree Investments (NASDAQ: WETF) with a lower price target of $8 (from $9.50), reflecting revised EPS estimates, AUM growth assumptions and attendant platform risks.

Citigroup says, "We are shifting from GAAP EPS to look through transitory litigation charges related to patent infringement suit, and instead focus on “operating” EPS. Our revised 2012-13 estimates are $0.06 and $0.18 versus $0.04 and $0.18 prior. Our 2014 estimate is $0.22. Despite strong AUM growth, Y/Y EPS in 2014 is muted by a shift toward a more normalized tax rate following anticipated NOL exhaustion."

WEFT closed at $6.38 a share on Friday.