BSIG - BrightSphere stock slips after Morgan Stanley downgrades to Equalweight

BrightSphere Investment Group (NYSE:BSIG) stock dips 1.3% in premarket trading after Morgan Stanley analyst Michael Cyprys downgrades the stock to Equalweight due to more balanced risk/reward following its stock buybacks. His thesis was based on the pace of execution for strategic alternatives accelerating to boost shareholder value. "We saw an underappreciated self-help and capital return story with a substantial cash pile building that could be returned to shareholders and narrow the valuation discount," Cyprys writes in a note to clients. Since then the company has sold six of seven affiliates, announced capital deployment strategy for $1.4B, with share repurchases of $1.1B. Shares have responded, rising 12% since Oct. 28. "While $45 bull case could still play out, we see a lower $13 bear case post tender with weaker balance sheet," the analyst writes. Shares closed at $28.55 on Monday. Cyprys's Equalweight rating aligns with the Neutral Quant rating and diverges from

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BrightSphere stock slips after Morgan Stanley downgrades to Equalweight