Eaton Vance (NYSE:EV) Facing Negative Muni Flows

Eaton Vance (NYSE:EV) will continue to struggle according to Ticonderoga, based largely on their exposure to Municipal bonds, which have turned negative this week.

"ICI flows continue to show strong flows into international equity (+$2.3bn), small outflows out of domestic equity (-$677mm) and stable taxable flows (+$4.1bn). However, municipal flows turned negative this week for the first time since April 14, 2010 (-$115mm). This is only the second week munis have been negative going back to 2/25/2009...Managers With Muni Exposure to Be Pressured by Flow Trends, Recent Sell-Off," said Ticonderoga.

Consequently, they maintain a "Sell" rating on Eaton Vance, which closed Thursday at $29.85, rising by $0.57, or 1.95 percent. They have a price target of $25 on Eaton.