Wells Fargo Starts Waddell & Reed (WDR) at Market Perform, Solid Performance Driving Organic Growth
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Price: $24.98 --0%
Rating Summary:
0 Buy, 13 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 13 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiated coverage on shares of Waddell & Reed (NYSE: WDR) with a Market Perform rating Wednesday, with a valuation range of $38-$41, which is based off of its 2011 and 2012 EPS estimates of $2.25 and $2.75.
The firm believes the company is fairly trading to the market segment currently, as it has typically been higher compared to its peers. Wells Fargo states that trends are pointing to WDR experiencing some solid organic growth in the future periods.
The company has been generating solid cash flows and recently announced that it will be giving back to its shareholders through a repurchase plan of $55-$65 million. The firm expects that the company will continue to pay out its $0.20 quarterly dividend and could declare an increase.
Wells Fargo reports since 85% of WDR's assets under management were classified as equity products as of December 31, 2010, it believes the company is positioned to benefit from a shift by retail investors from fixed income into equity products over the coming months.
WDR consisted of 1,847 financial advisors as of December 31; and according to the company's management team, proprietary WDR products make up approximately 95% of total sales in this high-margin segment.
For more ratings news on Waddell & Reed click here and for the rating history of Waddell & Reed click here.
Shares of Waddell & Reed closed at $38.78 yesterday, with a 52-week range of $21.52-$42.20.
The firm believes the company is fairly trading to the market segment currently, as it has typically been higher compared to its peers. Wells Fargo states that trends are pointing to WDR experiencing some solid organic growth in the future periods.
The company has been generating solid cash flows and recently announced that it will be giving back to its shareholders through a repurchase plan of $55-$65 million. The firm expects that the company will continue to pay out its $0.20 quarterly dividend and could declare an increase.
Wells Fargo reports since 85% of WDR's assets under management were classified as equity products as of December 31, 2010, it believes the company is positioned to benefit from a shift by retail investors from fixed income into equity products over the coming months.
WDR consisted of 1,847 financial advisors as of December 31; and according to the company's management team, proprietary WDR products make up approximately 95% of total sales in this high-margin segment.
For more ratings news on Waddell & Reed click here and for the rating history of Waddell & Reed click here.
Shares of Waddell & Reed closed at $38.78 yesterday, with a 52-week range of $21.52-$42.20.
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