Goldman Sachs downgrades AllianceBernstein stock on slowing growth

Published 26/06/2025, 22:04
Goldman Sachs downgrades AllianceBernstein stock on slowing growth

Investing.com - Goldman Sachs downgraded AllianceBernstein (NYSE:AB) stock rating to Neutral from Buy on Thursday, maintaining a price target of $40.00, which is approximately in line with the current share price of $40.90. The stock is trading near its 52-week high of $41.86, though InvestingPro analysis suggests the stock may still be undervalued.

The downgrade comes despite Goldman Sachs acknowledging AllianceBernstein’s relatively strong positioning, including its growing presence in Private Markets, partnership with Equitable, and better-than-peer average growth in traditional liquid products. The company maintains a robust financial health score of 3.46/5 according to InvestingPro, and notably has maintained dividend payments for 38 consecutive years, currently offering an attractive 7.9% yield.

Goldman Sachs cited emerging signs of slowing organic growth across both Equities and Fixed Income segments, which could potentially offset benefits from the company’s structurally stronger growth areas such as Private Markets.

The investment bank expects AllianceBernstein’s organic growth to remain negative through 2026 before turning positive at approximately 1% in 2027, according to its analysis.

Goldman Sachs also lowered its earnings estimates for AllianceBernstein to $3.30, $3.58, and $3.99 for 2025, 2026, and 2027 respectively, noting the stock’s year-to-date outperformance of 9% and its current trading at 12 times next-twelve-months price-to-earnings ratio, which aligns with historical valuation.

In other recent news, AllianceBernstein Holding L.P. reported its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share of $0.80 compared to the forecast of $0.79. The company announced net revenues of $838 million, which, despite a 5% decrease year-over-year, showed a 6% increase on a like-for-like basis. AllianceBernstein’s assets under management rose to $803 billion in May 2025, up from $781 billion in April, driven primarily by market appreciation. The firm experienced slight inflows in its private wealth channel, although institutional and retail channels saw outflows. In a significant board update, AllianceBernstein announced that Jeff Hurd resigned from the Board of Directors, and Robin Raju was appointed as a new Non-Independent Director. Additionally, the firm reported a notable increase in equity assets, which rose to $332 billion from $315 billion in April. In terms of analyst activity, there is no specific upgrade or downgrade reported, but the firm’s strong financial performance indicates positive sentiment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.