Raymond James Lowers Rating On Silvercrest Asset Management

In a report published Monday, Raymond James analysts downgraded the rating on

, from Strong Buy to Outperform, while reducing the price target from $20 to $17. Silvercrest is well positioned to expand its share in the high net worth asset management market, driven by its strength in the multifamily office/registered investment advisor segment. The company is also very successful in the institutional market. The company reported its 1Q15 EPS in-line with the Raymond James estimate. "Adjusted EBITDA was $5.0 million, basically flat year-over-year compared to $5.0 million in 1Q14 but slightly below our $5.3 million forecast, reflecting the level of tax and family office service revenues. Adjusted EBITDA as a percentage of revenue (including equity income from investments) was 28.5% compared to 29.8% a year earlier," the analysts mentioned. The non GAAP operating EPS estimates for 2015 and 2016 have been reduced from $0.98 to $0.81 and from $1.13 to $0.82, respectively. The adjusted EBITDA estimates for 2015 and 2016 have been reduced from $23.6 million to $22.8 million and from $26.8 million to $26.2 million, respectively. "Our forecasts assume that the previously announced Jamison, Eaton & Wood acquisition closes at the end of 2Q15," the analysts added. Silvercrest is expected to adopt a new equity compensation plan for its employees in the near future. The price target has been reduced to reflect the revised EBITDA estimates and an increased share count resulting from the issuance of new stock units under the equity compensation plan.