Turnarounds can be powerful drivers for higher stock prices, but the
real winners are the companies that not only pull out of the dive but
actually start gaining altitude again. I think AllianceBernstein (NYSE:AB)
very much belongs in that group, as the company has being doing a good
job of driving improved asset flows and generating better margins from
its cost base. Better still, management is thinking growth again (and
delivering), with expanding platforms in index, asset allocation, and
alternative investments offering more margin leverage as the flows
materialize.
AllianceBernstein shares are up about 20% from when I last wrote, doing better than rivals like Invesco (NYSE:IVZ), BlackRock (NYSE:BLK), Franklin Resources (NYSE:BEN), and Legg Mason (NYSE:LM)
before considering the significant yield here. I think that AB has a
good chance of generating 10% annualized earnings growth between 2014
and 2019, and discounting that back gives me a fair value of about
$34.50 today.
Read more here:
Forget Turning Around, AllianceBernstein Is Growing
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