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UPDATE: Goldman Sachs Downgrades Eaton Vance, Expects to Underperform

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In a report published Monday, Goldman Sachs analyst Marc Irizarry downgraded Eaton Vance (NYSE: EV) from Neutral to Sell and lowered the price target from $45.00 to $33.00.

Goldman Sachs expects Easton Vance's first quarter results of 2014 to act as a “negative catalyst”. Irizarry commented, “We expect shares of EV to underperform given: (1) Decelerating flow trends and growing capacity concerns in floating rate funds (15% of AuM, 60% of flows in 2013); (2) EM exposure could drive flow/performance choppiness for Parametric and Global Macro Absolute (GMAR), together 10% of AuM; and (3) lackluster performance in the core equity business limits EV's participation in better industry flows.”

The analyst's EPS estimate of $0.56 is 8% below consensus. Goldman Sachs cut FY2014, 2015 and 2015 EPS estimates due to lower flow estimates from +$8 billion to -$10 billion. The analyst's EPS estimates for 2014, 2015, and 2016 are $2.20, $2.28, and $2.58, respectively.

Shares of Eaton Vance closed at $38.07 on Friday and are trading down 1.97% at $37.32 shortly after the opening bell.

Latest Ratings for EV

DateFirmActionFromTo
Oct 2017Bank of AmericaMaintainsNeutral
Oct 2017Deutsche BankInitiates Coverage OnBuy
Aug 2017JP MorganUpgradesUnderweightNeutral

View More Analyst Ratings for EV
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Marc IrizarryAnalyst Color Downgrades Analyst Ratings

 

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