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
No comments:
Post a Comment