Envestnet ( NYSE: ENV ) was cut to outperform from strong buy at Raymond James after the fintech company's shares have jumped ~35% over the past three months partly helped by comments from activist investor Impactive Capital.
The "recent rally provides an opportunity to take some money off the table," Raymond James analyst Patrick O'Shaughnessy, who raised his price target to $71 from $61, wrote in a note earlier on Friday.
The note comes after Impactive, which owns a ~7.5% stake in Envestnet ( ENV ), on Wednesday, announced it nominated four directors for the fintech company's board.
"While it’s unclear to us whether Impactive and its nominees can add value to Envestnet’s efforts to re-accelerate revenue growth, we do think their presence will add a sense of urgency for Envestnet’s management and current board members as well as lay the groundwork for other potential strategic options should improved revenue growth fail to materialize," O'Shaughnessy added.
The proxy fight comes after Envestnet ( ENV ) stock fell 22% last year and potential buyers reportedly dropped out of bidding for the company. Bloomberg reported in February that the company was exploring its options after receiving takeover interest.
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Envestnet cut at Raymond James after recent rally