On Thursday, Artisan Partners (NYSE:APAM) Asset Management (NYSE:APAM) received an updated stock price target from TD Cowen, with the firm expressing a more constructive view on the company's future prospects. The price target was increased to $43.00, up from the previous $41.00, while the Hold rating on the stock was maintained.
The analyst's remarks highlighted a positive shift in expectations for Artisan Partners' long-term flow trajectory, even though estimates for 2025 are anticipated to be somewhat transitory. The assessment also took into account the company's margin outlook, performance fees (PFs), capital return potential through dividends, and possible mergers and acquisitions activities.
Despite these positive factors, the firm noted concerns about a lower fee rate due to an adverse mix shift within the fixed income (FI) segment, which is considered a key area for incremental growth. This observation was factored into the revised price target.
The new price target of $43.00 is based on 11 times the firm's estimated earnings per share (EPS) for 2025. This adjustment reflects a blend of positive expectations and caution regarding the fee rate challenges faced by Artisan Partners.
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