NEW YORK (TheStreet) -- Artisan Partners Asset Management Inc. (APAM - Get Report) was initiated with a "market perform" rating and $58 price target by analysts at BMO Capital Markets on Wednesday morning.
The firm said it started the independent investment management company with the rating based on Artisan's showing solid net asset growth and expansion.
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Separately, TheStreet Ratings team rates ARTISAN PARTNERS ASSET MGMT as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:"We rate ARTISAN PARTNERS ASSET MGMT (APAM) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its premium valuation and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for ARTISAN PARTNERS ASSET MGMT is currently lower than what is desirable, coming in at 33.62%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, APAM's net profit margin of 4.27% is significantly lower than the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- ARTISAN PARTNERS ASSET MGMT reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ARTISAN PARTNERS ASSET MGMT increased its bottom line by earning $0.38 versus $0.00 in the prior year. This year, the market expects an improvement in earnings ($3.28 versus $0.38).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 192.7% when compared to the same quarter one year prior, rising from $2.95 million to $8.64 million.
- You can view the full analysis from the report here: APAM Ratings Report