UPDATE: JP Morgan Raises PT to $37 on Eaton Vance, Maintains Neutral on Higher Expenses

JP Morgan maintained Eaton Vance EV with a Neutral rating and raised the price target from $33.00 to $37.00. JP Morgan said, "EV reported F1Q adj. EPS of $0.50, missing our estimate of $0.53 on higher expenses and share count. Eaton Vance reported solid sales during the quarter, but the lack of operating leverage was disappointing and led to a negative market reaction following the results. Overall, Eaton Vance is benefiting from its recent deals and liftouts, which we believe is driving sales and could drive earnings, but only if it can manage expenses better than it did last quarter. We expect better sales going forward at the cost of a lower blended fee rate. We also model higher expenses and sharecount then previously expected." Eaton Vance closed at $38.75 on Wednesday.