Keefe Bruyette & Woods Gives Update On AB, BEN, BLK, EV

Risks to Alliance Berstein AB include: assets, revenues, and earnings are leveraged to the performance of Global equity and bond markets and demand for products is vulnerable to weak investment performance and poor capital market returns. Risks to Franklin Resources BEN include: assets, revenues, and earnings are highly leveraged to the investment performance of Franklin's products specifically, as well as the broader equity and bond markets both within the U.S. and globally. In addition, KBW's price target assumes that Franklin can continue to generate positive inflows, contributing to its premium valuation. Risks to BlackRock's BLK target price include: sensitivity to changes in investment performance and assets under management, as well as integration risk. BlackRock's revenues and earnings are very sensitive to changes in AUM. The changes are a function of investment performance, which in turn drives new business flows and investment returns on existing assets. Risks to Eaton Vance EV include: assets, revenue, and earnings are highly sensitive to changes in equity market values and interest rates. Also, prospective regulatory change in the asset management industry could negatively affect the demand for the company's products and/or its profitability. Finally, the price target ($31) is set using a discounted cash flow model and P/E analysis and is sensitive to variations in flows and market returns. AB closed Friday at $25.27 BEN closed Friday at $124.59 BLK closed Friday at $173.15 EV closed Friday at $31.75