Barclays on U.S. Brokers, Asset Managers & Exchanges: Asset Managers 2Q Earnings Preview
Tweet Send to a FriendGet Alerts BEN Hot Sheet
Price: $167.28 -0.34%
Rating Summary:
6 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 23 | New: 19
Rating Summary:
6 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 23 | New: 19
Trade BEN Now!
Barclays on U.S. Brokers, Asset Managers & Exchanges: Asset Managers 2Q Earnings Preview
Barclays analyst, Roger A. Freeman, said, "We are fine-tuning our 2Q11 EPS estimates on the traditional asset managers to reflect returns and flows for the quarter. Overall, our 2Q EPS estimates are largely unchanged as we have been modeling flat equity market returns, which is roughly in line with the S&P 500 Index declining 0.4%. On an average basis, the S&P 500 was up about 1%, which is also in line with our forecast, as the market weakness during the quarter occurred mostly in June, and therefore did not have a sizeable impact on average AUM. Out of eight stocks, our EPS estimate on five is unchanged, and three are moving lower. On a full-year basis, our EPS estimates are mostly unchanged, as our S&P 500 target for 2011 remains 1,450 (up 15% y/y, or up 10% for the second half of the year), which is consistent with our equity strategist's market view. For the 3Q and 4Q, we are currently modeling 5% equity market returns in each of the quarters."
"On a stock-specific basis, our thesis is unchanged, as we continue to believe our Overweight-rated stocks (Franklin Resources (NYSE: BEN), Invesco (NYSE: IVZ), Janus Capital (NYSE: JNS), Legg Mason (NYSE: LM), Waddell Reed (NYSE: WDR)) remain attractive. BEN and IVZ remain our favorite names within the group, as these two companies are well diversified across asset classes, geographies and distribution channels. In terms of LM, we are giving credit to cash earnings that run considerably higher than GAAP. We also believe further EPS growth in CY2012 from LM's ambitious cost rationalization initiatives will draw increasing investor attention over the course of 2011. Looking at JNS and WDR, these two names are among the most equity-focused managers, poised to potentially benefit from a market rally and flows into that asset class. That being said, we are adjusting our price target down on JNS to $12 from $14, with a lower target multiple to 14x from 16x, to reflect outflow and performance challenges at the company."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Barclays analyst, Roger A. Freeman, said, "We are fine-tuning our 2Q11 EPS estimates on the traditional asset managers to reflect returns and flows for the quarter. Overall, our 2Q EPS estimates are largely unchanged as we have been modeling flat equity market returns, which is roughly in line with the S&P 500 Index declining 0.4%. On an average basis, the S&P 500 was up about 1%, which is also in line with our forecast, as the market weakness during the quarter occurred mostly in June, and therefore did not have a sizeable impact on average AUM. Out of eight stocks, our EPS estimate on five is unchanged, and three are moving lower. On a full-year basis, our EPS estimates are mostly unchanged, as our S&P 500 target for 2011 remains 1,450 (up 15% y/y, or up 10% for the second half of the year), which is consistent with our equity strategist's market view. For the 3Q and 4Q, we are currently modeling 5% equity market returns in each of the quarters."
"On a stock-specific basis, our thesis is unchanged, as we continue to believe our Overweight-rated stocks (Franklin Resources (NYSE: BEN), Invesco (NYSE: IVZ), Janus Capital (NYSE: JNS), Legg Mason (NYSE: LM), Waddell Reed (NYSE: WDR)) remain attractive. BEN and IVZ remain our favorite names within the group, as these two companies are well diversified across asset classes, geographies and distribution channels. In terms of LM, we are giving credit to cash earnings that run considerably higher than GAAP. We also believe further EPS growth in CY2012 from LM's ambitious cost rationalization initiatives will draw increasing investor attention over the course of 2011. Looking at JNS and WDR, these two names are among the most equity-focused managers, poised to potentially benefit from a market rally and flows into that asset class. That being said, we are adjusting our price target down on JNS to $12 from $14, with a lower target multiple to 14x from 16x, to reflect outflow and performance challenges at the company."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: UBS Downgrades Carnival (CCL) to Neutral; Worst May Not Be Behind
- First Time Cruisers Pass on Carnival (CCL); Wells Fargo Cuts to Market Perform
- UPDATE: BTIG Starts ING U.S (VOYA) at Buy, Shares 'Significantly Undervalued'
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Janus Capital, Barclays, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
