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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.
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