UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Affiliated Managers Group on Mixed Factors

In a report published Wednesday, Citigroup analyst William R. Katz reiterated a Neutral rating on Affiliated Managers Group AMG, and raised the price target from $160.00 to $180.00. In the report, Citigroup noted, “On the one hand, we are bullish on AMG's strategic positioning and flow prospects. On the other hand: 1) we believe much good news is priced in at 16.5x revised 2014E EPS and ~14x and 12.5x 2014E-15E EBITDA (nearly 40% premium to peers); and, 2) the challenge for AMG will be to generate enough deals (reflecting either increase in size and/or frequency) to ratably drive accretion given higher level of earnings while also maintaining the intangible tax shield. We raise our target $20 to $180 following higher sector multiples and sustainability of flows but would look for a pullback for a better entry point.” Affiliated Managers Group closed on Tuesday at $179.06.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsCitigroupWilliam R. Katz
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!