Goldman Sachs Reiterates Federated Investors (FII) Sell Rating

Goldman Sachs analysts Marc Irizarry, Alexander Blostein and Neha Killa reiterated their Sell rating for shares of Federated Investors, Inc. (NYSE: FII).

The analysts wrote that they see Federated Investors as a cyclical donor in the asset management business.

They also said that Federated Investors still faced lingering regulatory concerns.

The Goldman Sachs analysts wrote, "record money market redemptions in 1Q10 suggest FII will continue to face significant outflows in the quarter, which we estimate will amount to $27 bn or 28% annualized organic decay -- most likely the worst in the group. Accordingly, we lower our 2010/2011 EPS estimates to $1.75/$1.80 from $1.77/$1.85, below the Street's $1.96/$2.08 on accelerating outflows."