MutualFundWire.com: Citi Analysts Say Artio Faces Growth Challenge, Invesco Outlook is Better
MutualFundWire.com
   The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Monday, June 07, 2010

Citi Analysts Say Artio Faces Growth Challenge, Invesco Outlook is Better


A pair of Citi stock analysts are reportedly taking a more negative outlook in mutual fund firm stocks. William Katz and Neil Stratton have given a "high risk" rating to shares of Artio Global and a "medium risk" outlook to shares of Invesco Ltd.

The Citi stock analysts set a price target for Artio of $21 per share. The shares closed Monday at $17.05 per share. According to an account of the report, the Citi analysts believe Artio shares should trade at a discount to their peers due to foreign currency risk and "uneven organic growth prospects."

They expect Artio's AUM fell by 9 percent in May to $51 billion. That forecast included "flattish new business" and "NAV depreciation in the flagship International Equity funds."

Artio announced a secondary offering on Friday based on the Friday close.

Katz and Stratton have a more optimistic take on Invesco shares, for which they have a price target of $25 per share. Invesco closed down nearly 4 percent at $17.13 in Monday trading.

They project a multiple of 15 times earning for Invesco, a range in line with that of its peer group. The risks facing Invesco, in their opinion, are depreciation, foreign exchange fluctuations and problems integrating deals.


Printed from: MFWire.com/story.asp?s=32435

Copyright 2010, InvestmentWires, Inc.
All Rights Reserved
Back to Top