Credit Suisse said the new management team at Calamos Asset Management, Inc CLMS is in a "course correction" mode, as the firm reiterated its Underperform rating and $6 target price on the stock.
Following the announcement of new CEO John Koudounis in March of this year, Calamos appointed a new CFO, Thomas Herman, in June.
"We wait to see if the infusion of a new management team (both external hires) will result in an improvement in performance, product innovation, and a return to positive organic growth," analyst Ari Ghosh wrote in a note.
"Also, we think CLMS is one of the weaker positioned small-cap asset managers for the new regulation (including the DOL rule), given its relatively higher contribution of distribution revenues and higher mix of expensive share classes," Ghosh added.
The analyst expects EPS of $0.05/$0.11 in 2016/2017 versus consensus estimates of $0.16/$0.35.
Shares of Calamos Asset Management closed Thursday's regular trading session at $7.30.
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