UPDATE: Citigroup Raises PT on Affiliated Managers Group on Mixed Factors

In a report published Wednesday, Citigroup analyst William R. Katz reiterated a Neutral rating on Affiliated Managers Group (NYSE: AMG), and raised the price target from $160.00 to $180.00.

In the report, Citigroup noted, “On the one hand, we are bullish on AMG's strategic positioning and flow prospects. On the other hand: 1) we believe much good news is priced in at 16.5x revised 2014E EPS and ~14x and 12.5x 2014E-15E EBITDA (nearly 40% premium to peers); and, 2) the challenge for AMG will be to generate enough deals (reflecting either increase in size and/or frequency) to ratably drive accretion given higher level of earnings while also maintaining the intangible tax shield. We raise our target $20 to $180 following higher sector multiples and sustainability of flows but would look for a pullback for a better entry point.”

Affiliated Managers Group closed on Tuesday at $179.06.