Waddell & Reed Financial, Inc. (WDR) Upgraded To Outperform Rating; Price Target Raised

Analysts Matt Snowling and Bill Jackson at FBR Capital Markets have upgraded Waddell & Reed Financial, Inc. (NYSE: WDR) from Market Perform to Outperform rating. The price target for Waddell & Reed Financial stock has been raised from $36 to $40.

Analysts expect the company’s first-quarter results to show meaningful operating margin improvement as a result of assets under management in the wholesale channel beginning to reach an inflection point.

Analysts have also raised 2010 and 2011 EPS estimates for the company. 2010 EPS estimate has been raised from $1.88 to $1.96, while 2011 EPS estimate has been raised from $2.21 to $2.36. The estimates have been raised to reflect slightly better than previously expected organic growth and better operating leverage.