Barclays Lowers Price Target and Estimates on Federated Investors (FII), Increased Fee Waivers in Q3

Barclays is reaffirming its Equalweight rating on shares of Federated Investors (NYSE: FII), but is lowering its price target by $1 to $24.

The company released its Q2 earnings inline with expectations, but due to an increase in net fee waivers of $23 million in Q3, the firm is reducing its FY11 and FY12 EPS estimates from $1.61 and $1.95 to $1.57 and $1.90.

An analyst at Barclays comments, "In our judgment, FII's fundamentals remain challenged given management's expectations of increased fee waivers in 3Q. That being said, with short-term rates having recently moved up slightly when compared to the beginning of July, we believe this guidance could be conservative if short-term rates stay at current level."

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 $21.37 yesterday.

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