Barclays Maintains an 'Equalweight' on Federated Investors (FII); Fee Waivers Increasing in 2Q

Barclays maintains an 'Equalweight' on Federated Investors (NYSE: FII), PT lowered by $2 to $25.

Barclays analyst says, "In our assessment, FII's fundamentals somewhat deteriorated given management's expectations of increased fee waivers in 2Q, given the lower effective fed funds rate. In particular, business trends for money markets have deteriorated again, following the FDIC assessment fee implementation on April 1st, which is having a depressing impact on the fed funds rate now at 9bps rather than high teens last quarter, and this has translated into lower repo rates and thus reduced yields in government money market funds. With the earnings recovery being pushed out and the shares trading at a peer group multiple, we believe FII will remain range bound for the time being." (Barclays lowers FY11 EPS estimate from $1.78 to $1.63 and FY12 from $2.01 to $1.95)

For more ratings news on Federated Investors click here and for the rating history of Federated Investors click here.

Shares of Federated Investors closed at $26.20 yesterday.

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