Sterne Agee Reports on Eaton Vance (EV)

In a report released by Sterne Agee, the firm commented on Eaton Vance (NYSE: EV). In the report, Sterne Agee was positive in its outlook for the company.

Sterne Agee writes, “We are increasing our fiscal 2011 and 2012 estimates by $0.05 each to $1.99 and $2.40, respectively, to reflect a higher level or fiscal 2Q11 ending AUM than was previously embedded in our model. We are increasing our price target by $1 to $39. Our price target reflects 15.5x calendar '11 cash operating earnings plus the ~$1.85 of net cash & investments held on the balance sheet. On a GAAP basis our price target equates to 18.5x calendar '11 EPS.”

Sterne Agee currently has a Buy rating on Eaton Vance and a price target of $39. Shares of the company closed the previous trading day at $32.44, down from the opening price of $33.