Keefe, Bruyette & Woods Upgrades Affiliated Managers Group (AMG) to Outperform

June 15, 2009 8:01 AM EDT

Keefe, Bruyette & Woods upgrades Affiliated Managers Group (NYSE: AMG) from Market Perform to Outperform. Price target raised from $61 to $72.

Keefe analyst says, "While AMG has recently suffered through outflows, we expect to see improving flow trends over the latter part of the year, mainly in the institutional business. Also, we think AMG has ample capacity to take advantage of what should be a favorable M&A environment over the second part of the year. Between cash on the balance sheet ($200mn-plus) and untapped borrowing capacity ($700mn-plus), the company has ample capital to pursue acquisitions and we believe could easily take on something as large as $500mn in size at the present time. As we reviewed in our June 8th report, management believes that it is a buyers market and sees reduced competition of properties, although they remain cautious considering the still uncertain environment."

To see more analyst ratings on AMG Click Here.

Affiliated Managers Group, Inc. (AMG) is an asset management company with equity investments in a group of boutique investment management firms (its Affiliates).

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