TD Cowen has raised the price target of AllianceBernstein Holding L.P. (NYSE: NYSE:AB) to $39.00, up from the previous target of $36.00 as the firm continues to recommend a Buy rating for the investment management company.
The adjustment in the price target follows AllianceBernstein's second-quarter financial results, with TD Cowen's analyst pointing out several reasons for the positive outlook, including a more favorable flow and fee rate combination that stands out, especially when compared to broader industry challenges.
Additionally, the analyst pointed out AllianceBernstein's potential benefits from a shift in investor preferences towards fixed income (FI) and a possible return to value-oriented investments. These market dynamics could play to the company's strengths and contribute to its performance. The firm also anticipates improved margin prospects for AllianceBernstein.
AllianceBernstein reported a 12% increase in assets under management (AUM) in the first quarter, reaching $759 billion. This growth was accompanied by a 27% rise in gross sales, amounting to $32.6 billion.
Meanwhile, TD Cowen maintains a Buy rating on AllianceBernstein, despite the company's June AUM report showing a mixed trend, with the AUM falling short of the firm's model by 0.9%. AllianceBernstein's plans for the future include expanding its capabilities in the U.S. retail market, accelerating growth in separately managed accounts, launching tax-efficient products, and leveraging distribution advantages in private alternatives.
InvestingPro Insights
Following the optimistic analysis by TD Cowen, AllianceBernstein Holding L.P. (NYSE: AB) also presents some compelling figures and prospects according to InvestingPro data. The company boasts a robust Market Cap of approximately $4.03 billion and is trading at an attractive P/E ratio of 12.04, which indicates a favorable valuation relative to its earnings. Additionally, the company's dividend yield stands at a significant 8.12%, a testament to its commitment to rewarding shareholders, which it has done consistently for 37 years.
InvestingPro Tips highlight that despite two analysts revising their earnings downwards for the upcoming period, AllianceBernstein is trading at a low P/E ratio relative to near-term earnings growth and pays a substantial dividend. Moreover, the company is trading near its 52-week high, and analysts predict it will be profitable this year, having been profitable over the last twelve months.
AllianceBernstein's strong fundamentals and positive analyst sentiment mirror the insights from InvestingPro, where additional tips are available to provide investors with an even deeper understanding of the company's potential. To access these insights and more, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With this valuable information, investors can make more informed decisions about their investment in AllianceBernstein.
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