Wells Fargo Starts Federated Investors (FII) at Market Perform; Fee Waivers and Outflows Keep Us Cautious

Wells Fargo initiates coverage on Federated Investors (NYSE: FII) with a Market Perform. PT $19.00.

Wells analyst says, "We are introducing 2011, 2012, and 2013 EPS estimates of $1.46, $1.61, and $1.74, respectively. FII may earn a valuation of $16-19 over the next 12 months, based on a multiple of 10-12x our 2012 EPS estimate. Our estimates are based on (1) modest outflows throughout our forecast period, driven primarily by outflows from money market funds and (2) partially offset by inflows into equity and fixed income accounts and (3) continued fee waivers throughout our forecast period as a result of a low interest rate environment."

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

Shares of Federated Investors closed at $14.84 yesterday.

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