Deutsche Bank Initiates Coverage on Artio Global Investors (ART) with a Hold; Solid Long-Term, But Headwinds Limit Upside
ART Hot Sheet
Rating Summary:0 Buy, 2 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Deutsche Bank initiates coverage on Artio Global Investors (NYSE: ART) with a Hold. Price target $26.
Deutsche analyst says, "We are initiating coverage of ART with a Hold rating, 2009 and 2010 operating EPS estimates of $1.42 and $1.66. Artio is a niche asset manager (~$55 billion in assets under management), that is known for its international equity strategy and was recently spun out of Julius Baer, a European private bank...We expect Artio to benefit over the long term from solid long term investment performance, diversified distribution (with an institutional weighting), an attractive niche (that is seeing increasing allocations from investors), an eventual industry shift back into equities, and new growth opportunities (products and distribution), which should lead to healthy organic growth, and attractive earnings growth, given its efficient operating model...However, we expect a few headwinds to limit the near term upside, including Artio’s lagging short term international equity performance (lagging its benchmark by ~1500 bps YTD), which will likely weigh on its organic growth given its relative size (~85% of AUM); relatively weak industry equity flows (though this is starting to improve); an efficient operating structure relative to the industry (50%+ operating margins versus ~30% for the sector), implying more of its earnings growth will depend on top line growth; a unique corporate structure that will create some near term noise and future selling pressure; and exposure to market and foreign exchange moves post the strong rally."
To see more analyst ratings on ART Click Here.
Artio Global Investors, Inc., an asset management company, provides investment management services to institutional and mutual fund clients.
Deutsche analyst says, "We are initiating coverage of ART with a Hold rating, 2009 and 2010 operating EPS estimates of $1.42 and $1.66. Artio is a niche asset manager (~$55 billion in assets under management), that is known for its international equity strategy and was recently spun out of Julius Baer, a European private bank...We expect Artio to benefit over the long term from solid long term investment performance, diversified distribution (with an institutional weighting), an attractive niche (that is seeing increasing allocations from investors), an eventual industry shift back into equities, and new growth opportunities (products and distribution), which should lead to healthy organic growth, and attractive earnings growth, given its efficient operating model...However, we expect a few headwinds to limit the near term upside, including Artio’s lagging short term international equity performance (lagging its benchmark by ~1500 bps YTD), which will likely weigh on its organic growth given its relative size (~85% of AUM); relatively weak industry equity flows (though this is starting to improve); an efficient operating structure relative to the industry (50%+ operating margins versus ~30% for the sector), implying more of its earnings growth will depend on top line growth; a unique corporate structure that will create some near term noise and future selling pressure; and exposure to market and foreign exchange moves post the strong rally."
To see more analyst ratings on ART Click Here.
Artio Global Investors, Inc., an asset management company, provides investment management services to institutional and mutual fund clients.
You May Also Be Interested In
- UPDATE: William Blair Starts EPIQ Systems (EPIQ) at Outperform; Broad Suite of Solutions in Electronic Discovery Sector
- Evercore Partners Starts Golar LNG Ltd. (GLNG) at Overweight
- UPDATE: Williams Financial Group Upgrades Semtech Corp. (SMTC) to Buy; Check Again...Quarter Was Fairly Strong
Create E-mail Alert Related Categories
New CoverageRelated Entities
Deutsche BankSign 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!
