Wednesday, June 3, 2015

Seeking Alpha: Forget Turning Around, AllianceBernstein Is Growing

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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