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By Sam Boughedda
Investing.com — Shares of Virtus Funding Companions Inc (NASDAQ:) tumbled 5% on Friday after Morgan Stanley downgraded the inventory to underweight from obese, slashing the worth goal to $240 from $393.
Analyst Michael Cyprys mentioned in a analysis be aware that he sees “deteriorating fund efficiency that would additional weigh on the flows outlook.”
Because of this, Morgan Stanley has minimize its forecast for Vitrus’ earnings earlier than curiosity, taxes, depreciation and amortization by 25% and diminished the worth goal by 39%.
“We’re now on the lookout for outflows of -4% in 2022 and -1.8% in 2023, vs. our prior expectation of inflows of +1% and +2.7%, respectively,” mentioned Cyprys.
Moreover, the analyst defined that retail separate account inflows have slowed.
“VRTS’s publicity to equities (62% of AUM) and skew to progress shares inside fund holdings have weighed on shopper urge for food and fund efficiency.”
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