Envestnet Not Worried Over 'Robo-Advisors'

JMP's Rishi Jaluria maintained Envestnet Inc's ENV Market Outperform rating, raising the price target from $36 to $45. The target increase came after Jaluria met with CFO Pete D'Arrigo and Chris Curtis.

The analyst believed the Department of Labor's (DOL) "fiduciary rule should accelerate the ongoing transition within the wealth management industry to fee-based from transaction-based accounts" in the future. Additionally, Envestnet doesn't expect rising robo-advisors to be a headwind to growth "and in fact, can speed up the transition to fee-based accounts," according to Jaluria.

Envestnet's Yodlee acquisition is "trending well" and was "helping to increase Envestnet's value proposition," according to Jaluria. Part of this initiative helped Envestnet to position itself well "to address the need for more digital wealth management solutions," stated the analyst.

Overall, Jaluria came away from the meeting believing DOL's fiduciary rule could provide a long-term growth catalyst for the Envestnet.

At time of writing, Envestnet traded at $35.74, up 3.1 percent.