UPDATE: Goldman Sachs Downgrades Affiliated Managers Group to Neutral, Reiterates $212 PT as Flows are Baked In, Need Deals for More Upside

In a report published Thursday, Goldman Sachs analyst Marc Irizarry downgraded the rating on

from Buy to Neutral, but reiterated the $212.00 price target. In the report, Goldman Sachs noted, “We downgrade AMG to Neutral from Buy as strong performance of the shares has led to a premium valuation (now 17X our 2014 estimate, 24% above three-year average P/E) and less upside to our price target. Our thesis that share gains by AMG's stable of active equity and alternative boutique asset managers would drive sector-leading organic growth has played out, with AMG delivering the second-best organic growth rate YTD (+11%) among our coverage. Performance fees from alternative asset manager affiliates such as Blue Mountain, AQR, ValueAct, First Quadrant and Pantheon have also contributed more to EPS (7% through 3Q – even before 4Q's seasonal performance fees) than expected (generally 5-10% of full-year EPS). The low level of deal announcements this year has been somewhat disappointing, though we think new investments could still add upside to 2014 guidance and consensus estimates.” Affiliated Managers Group closed on Wednesday at $202.93.