Market Overview

Medley's Growth Initiatives Are Already Priced Into The Stock

Related MDLY
Earnings Scheduled For March 29, 2018
Earnings Scheduled For May 12, 2017

Ladenburg Thalmann downgraded Medley Management Inc (NYSE: MDLY) to Neutral from Buy on valuation. However, the brokerage raised its price target by $1.50 to $7.50, implying a potential return of 4 percent.

Medley reported Q2 core EPS of $0.14, which missed Ladenburg forecast/consensus of $0.16 on higher compensation and G&A expenses. Higher fee income, driven by robust leveraged loan market, mitigated declines in private funds and SMAs.

The company total AUM (committed funds) at the end of second quarter remained at $5.0 billion versus $3.2 billion invested.

"MDLY has been a strong performer since mid-1Q16 as the leveraged loan market has rebounded within a stronger credit environment," analyst Mickey Schleien wrote in a note.

However, the brokerage cut its 2016 core EPS forecast to $0.59 from $0.63 to reflect this quarter's miss, reduced FAUM growth assumptions, and higher forecast expenses. It also set a 2017 core EPS forecast of $0.69 (consensus is $0.72).

At time of writing, shares of Medley were down 0.50 percent to $7.94.

Latest Ratings for MDLY

Nov 2016Deutsche BankDowngradesBuyHold
Nov 2016Ladenburg ThalmannUpgradesNeutralBuy
Aug 2016Compass PointInitiates Coverage onBuy

View More Analyst Ratings for MDLY
View the Latest Analyst Ratings

Posted-In: Ladenburg Thalmann Mickey SchleienAnalyst Color Downgrades Price Target Analyst Ratings


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