Ticonderoga Reiterates a 'Sell' on Artio Global Investors (ART); Reports April AUM - No Letup in Outflows
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Price: $2.74 --0%
Rating Summary:
1 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
1 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Ticonderoga reiterates a 'Sell' on Artio Global Investors (NYSE: ART), PT $11.50.
Ticonderoga analyst says, "ART reported April AUM of $51.8bn, up 1% from March. This compares to 4.2% for IVZ and BEN and 1.7% for LM (ex-items). We estimate that net outflows were close to $1.5 billion for the month (ann. organic decay of 37%) vs. $2 billion last month; we were expecting outflow of about $1 billion. We also estimate that half of the outflows were retail related. ART is continuing to lose assets at an accelerated pace but has been saved by the stock market. However, in the face of more recent weakness in international stocks and a strengthening dollar, we believe the earnings model may begin to feel significant pressure. We estimate funds are already down 4% for the month (early May)."
"The bias is to lower estimates, but we will wait until we are two months into the quarter. Accelerating outflows, increasing compensation costs, relative underperformance, and re-emerging debt fears in Europe all represent significant headwinds for the stock in the near-term, in our view."
For more ratings news on Artio Global Investors click here and for the rating history of Artio Global Investors click here.
Shares of Artio Global Investors closed at $15.58 yesterday.
Ticonderoga analyst says, "ART reported April AUM of $51.8bn, up 1% from March. This compares to 4.2% for IVZ and BEN and 1.7% for LM (ex-items). We estimate that net outflows were close to $1.5 billion for the month (ann. organic decay of 37%) vs. $2 billion last month; we were expecting outflow of about $1 billion. We also estimate that half of the outflows were retail related. ART is continuing to lose assets at an accelerated pace but has been saved by the stock market. However, in the face of more recent weakness in international stocks and a strengthening dollar, we believe the earnings model may begin to feel significant pressure. We estimate funds are already down 4% for the month (early May)."
"The bias is to lower estimates, but we will wait until we are two months into the quarter. Accelerating outflows, increasing compensation costs, relative underperformance, and re-emerging debt fears in Europe all represent significant headwinds for the stock in the near-term, in our view."
For more ratings news on Artio Global Investors click here and for the rating history of Artio Global Investors click here.
Shares of Artio Global Investors closed at $15.58 yesterday.
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