NEW YORK (TheStreet) -- Shares of Eaton Vance Corp. (EV) are down 0.07% to $41.70 after the company was downgraded at Citigroup today to "sell" from "neutral," with its price target raised to $38 from $35.
The investment management and advisory services firm's exchange-traded managed fund (ETMF) potential seems "overplayed," analysts said.
"With the stock gapping up 17% on Friday 11/7, we believe the shares have overshot economic potential of nascent ETMF business while looking past both the complexities associated with the launch/adoption along with still mixed real-time long-term flow dynamics," analysts said.
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"[We] lift target $3 for potential growth nonetheless to $38. New target assumes ETMF adoption rate will track the ETF industry, resulting in potentially $1.5T in AUM-related licensing earnings," analysts added.
Separately, TheStreet Ratings team rates EATON VANCE CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EATON VANCE CORP (EV) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."