Saturday, August 2, 2014

Seeking Alpha: AllianceBernstein Looking Stronger, With More To Come

I kinda/sorta liked AllianceBernstein Holding LP (NYSE:AB) at the start of this year, thinking that investors could collect a solid tax-advantaged yield while waiting to see if management's turnaround and self-improvement efforts would really lead to better results. I won't pretend, then, that I saw the 20% year-to-date move coming, nor the significant improvements in fund inflows.

That's what has come to pass, though, and now I find myself seriously rethinking what AllianceBernstein's earnings progression can look like with lower legacy attrition, solid inflows, and significant operating leverage. I'm concerned that I may be overcorrecting because of just a couple of good quarters, but I'm starting to think that a high-$20s to low $30s fair value may not be so ridiculous, though the risks of a sharp market correction and/or higher rates are quite real.

Continue here:
AllianceBernstein Looking Stronger, With More To Come

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