UPDATE 2-Goldman downgrades US asset management sector

mercoledì 10 settembre 2008 20:16

 (Adds details)
 Sept 10 (Reuters) - Goldman Sachs lowered its view on the
U.S. asset management segment to "neutral" from "attractive,"
saying a strong dollar, slowing global economy and rising
competition from higher deposit rates will weigh on the sector.
 "We believe that deteriorating international equity fund
flows, increasing competition for investors' dollar from bank
depositories, and the general lack of market conviction will
continue to pressure assets under management and earnings
growth over the coming quarters," analysts Marc Irizarry and
Alexander Blostein wrote in a note to clients.
 The analysts said the recent rise in deposit rates is
contributing to the weakening fund flow, and it will be
increasingly more difficult for managers with mediocre
investment performance track record to bring in new money,
while the best performers would continue to gain share.
 Goldman downgraded Calamos Asset Management (CLMS.O: Quotazione) to
"sell" from "neutral" and added it to its Americas conviction
sell list. Calamos shares fell more than 10 percent.
 The brokerage also downgraded Franklin Resources (BEN.N: Quotazione) to
"neutral" from "buy".
 However, Goldman upgraded Eaton Vance (EV.N: Quotazione) to "buy" from
"neutral" and added it to the brokerage's conviction buy list,
citing the company's low international exposure and expected
growth in assets under management.
 Goldman retained its "buy" rating on Janus (JNS.N: Quotazione) but
removed it from the conviction buy list.
 The brokerage said BlackRock (BLK.N: Quotazione) remains its favourite
diversified asset gatherer.
 The analysts said the segment's relative valuation is
approaching the highest level since early 2006 and might be
overdue for a correction.
 The following table lists the brokerage's price target
changes and ratings on the stocks. COMPANY                     
       RATING                 PRICE TARGET Prior       
Current AllianceBernstein (AB.N: Quotazione)               Neutral         
     $54 Affiliated Managers (AMG.N: Quotazione)            Buy         
     $103 Franklin Resources (BEN.N: Quotazione)             Neutral    
     $104 BlackRock (BLK.N: Quotazione)                      Buy        
     $230 Calamos Asset Management (CLMS.O: Quotazione)      Sell       
     $18 Eaton Vance (EV.N: Quotazione)                     Buy         
     $44 Gamco Investors (GBL.N: Quotazione)                Sell        
     $41 Janus Capital (JNS.N: Quotazione)                  Buy         
     $32 Pzena Investment Management (PZN.N: Quotazione)    Neutral     
     $10 T. Rowe Price (TROW.O: Quotazione)                 Neutral     
     $58 Waddell & Reed (WDR.N: Quotazione)                 Neutral     
 (Reporting by Santosh Nadgir in Bangalore; Editing by Jarshad
Kakkrakandy, Deepak Kannan)