Market Overview

Citi Double-Downgrades WisdomTree To Sell, Slashes Target To $15

  • The share price of WisdomTree Investments, Inc. (NASDAQ: WETF) has been declining for the past five days, dropping more than 25 percent since August 19.
  • Citi’s William R Katz has downgraded the rating on WisdomTree from Buy to Sell, while lowering the price target from $30 to $15.
  • Although the long-term story remains intact, Katz expects 20 percent correction potential for the stock, which has declined sharply in recent times and could see further multiple compression.

While other asset managers have also seen a sharp decline in share price month-to-date, Katz expressed some concern regarding WisdomTree’s flow story, which appears to be deteriorating, with key indicators softening quickly.

In addition, there appears to be increasing margin pressure, driven by the rapid AUM decline and higher spending, along with an unfavorable fee rate shift. Katz also stated that the multiple could compress going forward, while the management has stepped up selling.

Also, “with US rate expectations deteriorating, it seems relative appeal for Currency-Hedged products is diminishing, creating a negative second derivative against a still high-PE multiple stock,” the Citi report said.

According to Katz, “[P]ossible attrition risk; absence of another killer product near term; more entrants into “Rules Based” market; and higher market uncertainty argue for a lower target P/E – particularly as Traditional multiples are collapsing.”

The EPS estimates for the company have been lowered.

Latest Ratings for WETF

Oct 2019MaintainsEqual-Weight
Feb 2019DowngradesNeutralSell
Dec 2018UpgradesSellNeutral

View More Analyst Ratings for WETF
View the Latest Analyst Ratings

Posted-In: CitiAnalyst Color Downgrades Price Target Analyst Ratings


Related Articles (WETF)

View Comments and Join the Discussion!

Latest Ratings

VIACJP MorganReinstates50.0
NUVASVB LeerinkMaintains92.0
SRPTCantor FitzgeraldMaintains211.0
LULUGoldman SachsMaintains219.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Pacific Crest On GoPro: Checks Are 'Encouraging'

Susquehanna Cheers The Children's Place 'Stringent Control' On Inventories, Expenses; Upgrades