UPDATE: Sterne Agee Initiates Coverage on Envestnet on Increasing Scale, Operating Leverage

In a report published Monday, Sterne Agee analyst Greg Smith initiated coverage on Envestnet (NYSE: ENV) with a Buy rating and $43.00 price target.

In the report, Sterne Agee noted, “We are initiating coverage of cloud-based investment advisor platform provider Envestnet with a Buy rating and $43 price target. We believe that ENV has built a highly scalable platform, which should generate substantial EPS growth over the coming years as ENV layers additional assets on to its platform. While ENV appears richly valued against near-term results, we think investors need to look out a number of years given the revenue growth and margin expansion potential.”

Envestnet closed on Friday at $35.95.