Citi Has Hold On Federated Investors, Inc (FII)

Citi Investment Research has a Hold rating and a $27 price target on shares of Federated Investors, Inc FII. In a note to clients, Citi writes, "We expect the stock to further lag peers given: 1) outsized money markets exposure at this point of the rate cycle; 2) uneven LT flow prospects; 3) elevated valuation; and, 4) minimal upside to our unchanged 12- month $27 price target. Affirm our Hold rating but would look to reduce positions in the ST. Despite mixed fundamental prospects, FII is trading in-line with peers – on both 2011 (depressed) and 2012 (normalized) EPS, tempering near term upside, in our view, and likely to weigh on the stock, particularly should markets continue to rally." Shares of FII closed at $27.08 yesterday, down 34 cents or 1.24%.