UPDATE: J.P. Morgan Lowering Price Target On Federated Investors (FII)

J.P. Morgan Chase & Co. is lowering its price target on shares of Federated Investors FII to $23 from $23.50, and has an Underweight rating on shares.

In a note to clients, J.P. Morgan writes, "We are reiterating out Underweight on Federated Investors. We are lowering estimates as we have identified 1Q11 headwinds in Federated's three main businesses, its money market, fixed income and equity franchises that we believe will keep AUM/revenue and EPS from growing near term. While the stock continues to perform reasonably well (despite underperforming peers and the S&P500 YTD), we still feel the stock is doing better than fundamentals warrant. Accordingly, we reiterate our Underweight rating. Our 12/11 target falls to $23."

Shares of FII gained 22 cents yesterday to close at $27.62, a gain of 0.8%.