J.P. Morgan Maintains Underweight on Federated Investors

J.P. Morgan is out with its report today on Federated Investors FII, maintaining Underweight. In a note to clients, J.P. Morgan writes, "We see the potential for Federated to outperform peers if equity markets become unstable. A flight from risk assets could send investors back to money market funds and away from equity and credit markets. In this scenario, Federated should outperform as our most defensive stock. Although we think rising rates will lead to material money fund redemptions, higher rates would also end fee waivers. We think the net effect would still be negative to earnings, but we could be wrong." J.P. Morgan maintains a $21.50 PT on FII. Shares of FII closed Tuesday at $25.63.