UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Waddell & Reed Financial
In a report published Wednesday, Citigroup reiterated its Neutral rating on Waddell & Reed Financial (NYSE: WDR), and raised its price target from $35.00 to $39.00.
Citigroup noted, “While the flow outlook is improved into 2013 – and bouncing from a tough 4Q – we remain on the sidelines as: 1) valuation appears full; and, 2) we see better capital return stories elsewhere in our coverage. Stock bounced on 1/29 on the notion flows are inflecting into 1Q with equities additive to already strong FI volumes. That said, key from here will be sustainability beyond typical seasonal patterns and slower redemption activity. We prefer WETF and BLK among Traditionals when overlaying valuation + flow/EPS leverage.”
Waddell & Reed Financial closed on Tuesday at $39.14.
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