Citi Reiterates Hold on Federated Investors, Reduces PT to $24

Citi Reiterated its Hold rating on Federated Investors FII. At the same time, Citi lowered its price target on the company's stock from $25 to $24. In a research report published today, Citi states, "We see FII struggling against deteriorating macro-economic backdrop and see the stock range bound. We would need to see the stock retrace toward $20 to reconsider our ambivalence, all else equal. So, why not an outright Sell given dissipating rate/volume leverage, limited EPS growth and regulatory uncertainty? Our decision essentially reflects already heavy short interest, including an industry leading 16 days to cover." On Wednesday, Federated lost 3.94% to end the day at $24.62.