Jefferies Reiterates Hold Rating, $26 PT on Eaton Vance

In a report published Wednesday, Jefferies & Company reiterated its Hold rating and $26.00 price target on Eaton Vance

. Jefferies noted, “EV reported total revenues of $298.7M compared to our estimate of $307.7M. The difference was primarily driven by lower than forecast investment advisory fees of $244.7M compared to our estimate of $251.1M. This was a function of lower average assets in the quarter ($192.8M vs our estimate of $195.1M) as well as a less favorable mix shift (fee rate declined to 50bp vs 51bp last qtr). Total expenses amounted to $203.8M vs. our estimate of $204.9M. Comp expense drove the majority of the variance ($94.7M vs. $96.9M est) with 'other' modestly higher than forecast as well ($36.4 vs. $35.1M est). Operating income of $95.0M was approx $7.7M lower than forecast ($102.8M est). As a result, margins came in modestly lower than anticipated at 31.8%. This compares to 32.4% in the prior quarter. The tax rate also came in slightly lighter than forecast at 35.5% compared to our estimate of 37.5% (typically a function of the consolidated CLO).” Eaton Vance closed on Tuesday at $27.29.