Citi Rates Allianceberstein Holding (AB) A Medium Risk

Citi Investment Research & Analysis analysts William R Katz and Neil Stratton rated shares of Allianceberstein Holding L.P. (NYSE: AB) Medium Risk, with a target price of $32 per share.

Katz and Stratton said that because Allianceberstein Holding L.P. was in the early stages of a turnaround, they believed that investors would look to 2011 for a return to a more normalized earnings outlook.

The Citi Investment Research & Analysis analysts wrote, "We forecast AUM to decline 6.5% in May to $468 billion at 5/31 from $501 billion at 4/30. Here, AUM was most negatively impact by NAV depreciation among global value + growth strategies. Our May forecast includes $2B of outflows, or a 4% annualized loss rate. Consistent with other managers, we also assume slowing retail volumes. However, we continue to believe the flow picture is gradually improving Y/Y and Q/Q given declining redemptions plus the positive and/or inflecting growth in the Private Client business though the latter may have suffered a slowing in momentum given deteriorating market conditions."

Shares of Allianceberstein Holding were down more than 2% at $27.46 during the morning trading session.

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