Medley's Growth Initiatives Are Already Priced Into The Stock
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
Date | Firm | Action | From | To |
---|---|---|---|---|
Nov 2016 | Deutsche Bank | Downgrades | Buy | Hold |
Nov 2016 | Ladenburg Thalmann | Upgrades | Neutral | Buy |
Aug 2016 | Compass Point | Initiates Coverage on | Buy |
View More Analyst Ratings for MDLY
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Posted-In: Ladenburg Thalmann Mickey SchleienAnalyst Color Downgrades Price Target Analyst Ratings
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