Gabelli Maintains Buy on Waddell & Reed Financial

Gabelli is out with its report today on Waddell & Reed Financial WDR, maintaining Buy. In a note to clients, Gabelli writes, "Waddell & Reed is well positioned to participate in the growth of managed investment assets. The company has a broad network for distribution through its 1,732 advisors and wholesale relationships. With strong performance across its product mix of equity and fixed income products, Waddell & Reed should continue to prosper from organic growth that exceeds industry rates. For 2011, we estimate firm net inflows of $7 billion or an 8.4% organic rate compared to $5.4 billion and 7.8% in 2010. Shares of Waddell & Reed are currently trading at 8.2x our 2011 EBITDA and 15.2x our 2011E earnings per share. The current price is attractive relative to our 2011 PMV of $51, which is based on 12x 2011E EBITDA of $340 million." At the time of posting, shares of WDR were trading at $35.08, down 0.11% from Wednesday's close.