UPDATE: J.P. Morgan Raises PT on Federated Investors on Rising Equity Markets Risk

In a report published Thursday, J.P. Morgan analyst Kenneth B. Worthington reiterated an Underweight rating on Federated Investors

, and raised the price target from $20.00 to $21.50. In the report, Worthington noted, “We are reiterating our Underweight on Federated and see it as the asset manager most at risk due to the migration back to equity funds. Federated is exposed to meaningful money market and fixed income fund redemptions as investors migrate from Federated cash (money funds) and near-cash (short/ultra short bond funds) products to equities. Given weaker equity performance, we don't see FII's equity fund business as an offset to shortfalls elsewhere. Furthermore, with short-term rates having fallen this year, money fund fee waivers are on the rise, leaving less room for earnings upside.” Federated Investors closed on Wednesday at $24.04.