UPDATE: Bank of America Upgrades WisdomTree to Buy on Settlement, Valuation

Bank of America raised its rating on WisdomTree

from Underperform to Buy with a reiterated $7 price objective. Bank of America noted, "We are upgrading WETF to Buy from Underperform based on a favorable settlement of a patent infringement lawsuit with Research Affiliates, along with attractive valuation. … Under the agreement WETF may introduce new fundamentally weighted ETFs that are weighted by less than three fundamental factors. Based on our reading of the material terms of the settlement, we believe that this should enable WETF to utilize its historical dividend and earnings-weighted methodology on future products. … We maintain our $7 price objective, which implies attractive potential upside of 22%." WisdomTree closed at $5.72 on Wednesday.