The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Analyst Sees Fund Stocks Caught in Doldrums Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, May 07, 2003

Analyst Sees Fund Stocks Caught in Doldrums

by: Sean Hanna, Editor in Chief

UBS Warburg kicked off its coverage of the fund industry on a lukewarm note this week. Glenn Schorr, the UBS Warbarg analyst now covering the industry, gave out his first grades to three fund firms and the sector overall. He is neutral.

Schorr, who joined UBS from Deutsche Bank in March, assigned a "neutral" rating to both the fund industry and to the short-term outlooks for Franklin Resources, Janus Capital and T. Rowe Price, reports Dow Jones Newswires. He believes that the stocks of brokerage firms are currently better positioned than asset managers to outperform.

He assigned a 12-month price target of $38 to Franklin Resources, $31 to T. Rowe Price and $14 for Janus. In the case of Janus, the price target is below the current price of the shares. His target for Franklin is roughly 8 percent above that stock's current price and T. Rowe is trading within pennies of his target.

He pointed to competition, market saturation, margin compression, limited expense flexibility, negative shift in asset mix, rising power of distributors, regulatory scrutiny and alternative products as reasons for his cautious outlook over the short-term.

Yet he believes that global demographic trends as well as the industry's strong cash flow and return on equity bode favorably for the industry over the long-term.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use