AB - AllianceBernstein: A Big Yield A Better Valuation Improved Technicals

2024-05-16 12:39:44 ET

Summary

• Asset managers have seen improved performance due to higher stock prices, steady interest rates, and strong returns in foreign equities.
• I have a buy rating on units of AllianceBernstein given its attractive valuation, high dividend yield, and improved momentum.
• I highlight key price levels to monitor as the units consolidate after a protracted downtrend from late 2021 through November last year.

Asset managers are in a much better spot today compared to 18 months ago. Domestic stock prices are of course higher, but with interest rates steadying out a bit and foreign equity returns looking solid, diversified allocations have produced impressive performances. It comes as private-market investing has also been in demand, particularly in the credit space. Not surprisingly, we have seen strong earnings results from several banks and asset management firms. ...

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