Citi Upgrades Waddell & Reed Financial To Buy, Raises PT To $44 (WDR)

Citi upgraded its Waddell & Reed Financial WDR rating to Buy from Hold and raised Waddell & Reed Financial's price target to $44 from $40 in a research report published today. In the report, Citi states, "Four factors drive the upgrade, reinforced following particularly bullish CEO webcast on 2/10. First, the flow story is accelerating, and lead indicators remain strong. Second, the mix of flows continues to broaden out. Third, FCF guidance for 2011 implies higher margins than previously modeled, and upside to consensus estimates. Fourth, tactically, see WDR as the most attractive domestic equities retail play relative to other beta centric names, such as EV, JNS, IVZ and TROW, where flow/valuation trends are more mixed." Shares of Waddell & Reed Financial closed Thursday at $37.70, up 1.95% from Wednesday's market close.