Friday, January 28, 2011

Affiliated Managers Group (NYSE:AMG) Positioned for Solid Growth

With their acquisition of Trilogy Advisors expected to close earlier than expected, along with an improving performance in domestic and international markets, Affiliated Managers Group (NYSE:AMG) is positioned for strong growth, according to Jefferies (NYSE:JEF).

They are raising their EPS estimate in the fourth quarter from $1.87 to $1.96, directly related to the deal for Trilogy Advisors closing sooner than originally thought. Full year EPS estimate was boosted from $7.15 to $7.30.

Also noted was increased performance fees and higher asset levels to the EPS revisement.

Jefferies maintains a "Buy" rating on Affiliated Managers, which was trading at $101.36, down $3.22, or 3.07 percent, as of 1:25 PM EST. They raised their price target on Affiliated from $98 to $117.

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