UPDATE: UBS Starts WisdomTree Investments (WETF) at Sell

November 2, 2016 7:24 AM EDT
Get Alerts WETF Hot Sheet
Price: $10.64 -0.84%

Rating Summary:
    7 Buy, 2 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - November 2, 2016 8:37 AM EDT)

UBS initiated coverage on WisdomTree Investments (NASDAQ: WETF) with a Sell rating and a price target of $7. Analyst Brennan Hawken expressed concerns about the company's ability to scale.

"WETF offers nothing but ETFs but we do not view the company as a proxy for the broader ETF market. Specifically, WETF's flows have been very poorly correlated to ETF growth rates over the last few years, however WETF's valuation implies a more optimistic growth rate than we think is likely. In our view the narrow/niche focus of WETF's products and the scale disadvantage of WETF versus its larger competitors are significant obstacles to a rapid recovery in their organic growth outlook. As a result, we do not believe WETF shares should trade at a 300% premium to the traditional AMs when the average over the past few years has been a 190% premium," said Hawken.

For an analyst ratings summary and ratings history on WisdomTree Investments click here. For more ratings news on WisdomTree Investments click here.

Shares of WisdomTree Investments closed at $8.66 yesterday.

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