UPDATE: Morgan Stanley Upgrades Brightsphere Investment (BSIG) to Overweight

(Updated - April 8, 2021 4:49 AM EDT)

Morgan Stanley analyst Michael Cyprys upgraded Brightsphere Investment (NYSE: BSIG) from Equalweight to Overweight with a price target of $30.00 (from $21.00).

The analyst comments "Upgrade BSIG to OW (from EW) and raise PT to $30 for +47% upside, as pace of execution on strategic alternatives accelerates with recent announced sales of Landmark and ICM (expected to close in 2Q), which follows sales of Barrow Hanley and Copper Rock last July. We see a substantial ~$1b cash pile pro forma for recent divestitures, representing 65% of current market cap which we expect will be used towards meaningful share repurchases. Raising EPS estimates by +30c/+14% in 2022, with expectations for $960m worth of share buybacks over next 4 quarters that reduces share count by -40%. Our target valuation implies a 7.6x multiple on 2022 EBITDA,and reflects sum-of-the-parts approach that ascribes an 8x multiple to quant & solutions segment and a 7x multiple to remaining liquid alpha and alts segments."

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

Shares of Brightsphere Investment closed at $20.37 yesterday.

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