UPDATE: Bank of America Reiterates Underperform Rating, Lowers PT on Manning & Napier Ahead of Near-Term Challenges

In a report published Friday, Bank of America analyst Adam Q. Beatty reiterated an Underperform rating on Manning & Napier MN, but lowered the price target from $18.00 to $17.00. In the report, Bank of America noted, “We see MN as an attractive franchise with a distinct investment culture and approach, but we are cautious due to recent outflows and performance challenges. While it has grown AUM rapidly in the last five years, recent outflows remain a risk. Key positives include strong long-term investment performance and a longstanding separate accounts business with high (90%+) account retention. In addition, MN has above-average fees and margins, the latter helped by flexible compensation.” Manning & Napier closed on Friday at $14.49.