UPDATE: Citi Downgrades Federated Investors and Lowers the PT from $21 to $16

Citi has published a report on Federated Investors FII downgrading the company and lowering the price target. In the report, Citi wrote, "FII is by far the most reliant on money markets (45% of 2Q revenues vs. median 3% for traditionals) and Fed commentary around keeping Fed Funds low through "at least" mid-2013 is likely to: 1) pressure money market volumes; 2) extend money market fee waiver pressure well into 2012; 3) curb any material EPS growth; while; 4) leaving alive regulatory tail risk and product efficacy." Citi downgraded Federated Investors from Medium Risk Hold to Medium Risk Sell with a price target lowered from $21.00 to $16.00. Federated Investors closed Tuesday at $18.46.