UPDATE: Citigroup Reiterates Sell Rating, Lowers PT on Artio Global Investors

In a report published Friday, Citigroup reiterated its Sell rating on Artio Global Investors

, but slightly lowered its price target from $2.75 to $2.50. Citigroup noted, “We affirm our Sell/High Risk rating, lower our already below consensus 2012-14 ‘adjusted' EPS estimates, and reduce our 12-month target $0.25 to $2.50 following a disappointing August AUM print announced after market close on 9/13. In our view, the release reinforces ART is caught in a vicious circle around (sharply) declining AUM, deteriorating mix and fee rates, eroding margins, and building pressure on FCF – which we see flipping to cash burn into YE12. Unfortunately, lead indicators remain mixed to negative, and we believe the sharp decline in AUM – likely centered in flagship institutional equities platform – could begin to erode growth in either retail and/or fixed income businesses, where lead indicators are also mixed.” Artio Global Investors closed on Thursday at $3.08.