UPDATE: Bank of America Downgrades GAMCO Investors to Underperform, Raises PT as Price Outruns Fundamentals

In a report published Wednesday, Bank of America analyst Adam Q. Beatty downgraded the rating on

from Buy to Underperform, but raised the price target from $63.00 to $69.00. In the report, Bank of America noted, “We are downgrading GBL to Underperform on valuation, despite raising our price objective (PO) by roughly 10% to $69. The recent rise in the stock price, by 27% in September, has outrun fair value, in our view, though fundamentals remain strong. Given GBL's 95% equity weighting, solid organic growth, likelihood of 2013 performance fees, strong balance sheet and capital distribution track record (including buybacks and special dividends), we continue to view the company as well-positioned, but at the current price prefer other names in the group for now.” GAMCO Investors closed on Tuesday at $75.00.