Goldman Sachs Reiterates Buy Rating, $9 PT on WisdomTree Investments

In a report published Friday, Goldman Sachs Group reiterated its Buy rating and $9.00 price target on WisdomTree Investments WETF. Goldman Sachs noted, “We add Buy-rated WETF to the Conviction List with 42% upside to our $9, 12-month price target. WETF has underperformed amid rising concerns about ETF price competition, but we view the company as insulated, differentiated, and positioned to gain share in an attractive niche. We see the risk/reward as attractive given an anticipated AuM growth of +30% over the next three years, with sustainable fee rates yielding margin expansion and 60% earnings growth. Downside is buffered by a potential takeout given the firm's scarcity value as an ETF innovator with exemptive relief.” WisdomTree Investments WETF closed on Thursday at $6.35.