Citigroup Reiterates Buy Rating on Och-Ziff (OZM)

Citigroup is out with an analyst note this morning that is reiterating their Buy/High Risk rating on shares of Och-Ziff Capital Management OZM. They have a price target of $22.00 on the stock. Citi analysts said that “we see the recent price weakness as an enhanced buying opportunity given: 1) OZM is among the likely least impacted from recent market volatility given its market-neutral (and generally FX hedged) platform; 2) our "stress test" indicates upside potential even under such scenarios; and, 3) recent reports indicate legislation could be softened vs the more severe initial taxation scenario, though still uncertain at present.” Analysts also said the issue of carried interest could hurt their outlook for the stock, which is being discussed as part of the Tax Extenders Bill. Citigroup closed by saying “We rate shares of Och-Ziff Capital Management Buy/High Risk (1H). OZM is benefiting from a real time positive inflow inflection, and should deliver among best in class organic growth over the next several years." "With 100% of AUM in alternatives, we forecast strong flow prospects as institutional demand accelerates and the search for alpha rises. Additionally, OZM is well positioned to garner market share given their impressive LT risk adjusted track record, transparent investment process, and stringent risk controls.”