Investment manager Eaton Vance Corp. (
) saw its rating downgraded on Thursday by analysts at Wells
The analyst cut its rating on EV to "Market Perform" from
"Outperform," and set its valuation range for the stock at $35-36.
Eaton Vance shares had closed at $35.17 on Wednesday.
Wells Fargo said that "EV has a solid management team, in our
view, which we believe is more focused on increasing shareholder
value, not revenues or AUM. The company offers an array of
high-quality niche products, including taxadvantaged and
tax-efficient funds, which are well positioned for the current
environment, in our opinion. However, in recent months, EV shares
have dramatically outperformed most asset management peers and now
seem fairly valued."
Eaton Vance shares fell 29 cents, or -0.8%, in premarket trading
The Bottom Line
We have avoided shares of EV since our early June 2008 coverage
began, when the stock was trading at $41.01. The stock has
technical support in the $30 price area. If the shares can continue
to firm up, we see overhead resistance around the $39-$40 price
levels. We would remain on the sidelines for now.
Eaton Vance Corp. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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