UPDATE: Keefe, Bruyette & Woods Downgrades Waddell & Reed Financial As Flow Trends Weigh On Stock

In a report published Wednesday, Keefe, Bruyette & Woods analyst Robert Lee downgraded the rating on

from Outperform to Market Perform, and lowered the price target from $74.00 to $63.00. In the report, Keefe, Bruyette & Woods noted, “We thought it was a largely as expected quarter on an operating basis as most of the beat was from higher investment income and a lower tax rate, with net inflows of +$1.2bn in-line with our +$1bn forecast. However, commentary that flow trends weakened through the quarter and are about -$1bn QTD contributed to weakness in the stock. Adjusting estimates and PT.” Waddell & Reed Financial closed on Tuesday at $55.41.