Barclays Maintains an 'Equalweight' on Envestnet (ENV); Small 3Q Miss, 4Q Market Pressure Likely

Barclays maintains an 'Equalweight' on Envestnet (NYSE: ENV) price target cut $1 to $13.

Barclays analyst says, "We are lowering our 2011 adjusted cash EPS estimate from $0.41 to $0.39, incorporating the $0.01 miss in 3Q11 and a $0.02 downward revision to 4Q11 principally due to the market decline into the end of 3Q11 (where nearly all of the AUM/A revenue is priced). Our 2011 adjusted EBITDA estimate is declining from $30.0mm to $28.2mm. Our 4Q11 adjusted EPS estimate declines from $0.11 to $0.09 with adjusted EBITDA of $6.2mm (20.8% margin), down from our prior $7.5mm (23.4% margin) estimate. We are also lowering our 2012 adjusted EPS estimate from $0.65 to $0.54, driven by the lower balances at the start of the year vs. our prior estimates, lower revenue spread as the asset mix continues to shift towards AUA, and higher operating expenses. Our 2012 adjusted EBITDA estimate is declining from $42.1mm to $36.3mm. We are lowering our price target from $14 to $13, based on a 10x EV/EBITDA multiple on our 2012 adjusted EBITDA estimate of $36mm."

For an analyst ratings summary and ratings history on Envestnet click here. For more ratings news on Envestnet click here.

Shares of Envestnet closed at $11.08 yesterday.

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