Citi Rates Och-Ziff Capital (OZM) High Risk

Citi Investment Research & Analysis analysts William R Katz and Neil Stratton rated the Och-Ziff Capital Management Group OZM a High Risk, with a price target of $22 per share. The analysts said that the three biggest risks facing Och-Ziff Capital Management Group were the company's investment performance, its growth rate and any major changes to carried interest taxation. The Citi Investment Research & Analysis analysts wrote, "We value the shares of OZM using a combination of Target P/E method and sum-of-the-parts. Our $22 12-month price target is derived by applying a target P/E multiple of 17x to our base fee (excluding performance fee impact) estimated 2011 DEPS estimate ($0.54), or $10, plus adding $12 for our estimated probabilistic value to OZM's potential performance fee revenue stream. Our 17x target P/E is in line with other best in class players." Shares of Och-Ziff Capital Management Group were down nearly 3% a $14.29 per share in afternoon trading.