UPDATE: Bank of America Upgrades Affiliated Managers Group to Buy on Potential Acquisitions
In a report published Wednesday, Bank of America analyst Cynthia Mayer upgraded the rating on Affiliated Managers Group (NYSE: AMG) from Neutral to Buy, and raised the price target from $151.00 to $165.00.
In the report, Mayer noted, “We expect AMG to outperform peers based on faster cash EPS growth which reflects both acquisitions and strong organic growth. AMG invests in boutique managers including hedge funds, using its cash flow in a tax efficient manner to generate further cash earnings. Risks include market volatility (98% of its AUM is in equity or alternatives) which can affect timing of acquisitions, base fee revenues, and performance fees. Its revenue sharing model limits operating leverage and downside volatility.”
Affiliated Managers Group closed on Tuesday at $152.38.
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