Keefe, Bruyette & Woods analyst Robert Lee today lowered his ratings on Franklin Resources, Invesco and Waddell & Reed Financial to “market perform” from “outperform,” while cutting his EPS estimates and price targets for the broader industry.
Following the rebound in stock prices late last week on hopes of government action to clean up the market’s bad debts, Mr. Lee also lowered his ratings on Pzena Investment Management and T. Rowe Price Group to “underperform” from “market perform.”
However, Mr. Lee raised his rating for AllianceBernstein to “outperform” from “market perform.” In a telephone interview, he said the stock, trading at roughly 11 times KBW’s 2009 earnings estimates for the firm, offers investors a more compelling valuation than competitors trading at multiples of 13 or greater.
