Goldman Sachs Adds WisdomTree Investments (WETF) to Conviction Buy List, Sees 42% Upside

October 5, 2012 8:08 AM EDT
Get Alerts WETF Hot Sheet
Price: $10.27 -3.48%

Rating Summary:
    7 Buy, 2 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Goldman Sachs added WisdomTree Investments (NASDAQ: WETF) to its Conviction Buy List with a price target of $9.00, suggesting 42 percent upside.

While shares have been pressured on rising concerns about ETF price competition, Goldman said the firm is insulated, differentiated, and positioned to gain share in an attractive niche.

The firm said risk/reward is attractive and they anticipated AuM growth of +30%
over the next three years, with sustainable fee rates yielding margin expansion and 60% earnings growth.

Downside risk is buffered as the company is a potential takeout given the firm's scarcity value as an ETF innovator with exemptive relief, Goldman notes.

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 $6.35 yesterday.

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