In a report released yesterday, Craig Siegenthaler from Bank of America Securities reiterated a Hold rating on AllianceBernstein, with a price target of $43.00.
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Craig Siegenthaler has given his Hold rating due to a combination of factors impacting AllianceBernstein’s current and future performance. Despite the company’s efforts to expand its insurance business by establishing new general account relationships and deploying significant capital into private market strategies, there are concerns about the overall net flows. The strategic partnership with FCA Re is expected to bring some inflows, but the impact is relatively modest compared to the broader challenges.
Additionally, while AllianceBernstein’s Lifetime Income Strategy is scaling well and benefiting from favorable regulatory opinions, the firm’s active equity performance remains soft, and net outflows persist. The company’s operating leverage improvements appear to have reached a plateau, and recent corporate developments, such as the lack of a C-corp conversion and management changes, add uncertainty. These factors collectively contribute to the decision to maintain a Neutral rating, as the potential for significant upside is tempered by these ongoing challenges.
In another report released on October 21, Barclays also maintained a Hold rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AB in relation to earlier this year.