Virtus Investment Partners falls on Morgan Stanley downgrade

Virtus Investment Partners

08/04/2022 15:07

** Shares of asset manager  VRTS.O  down 7.8% at $201.11
    ** Morgan Stanley downgrades stock to "underweight" from
"overweight" on deteriorating fund performance, which may weigh
on flow outlook, reduce profitability and pressure valuation 
    ** Brokerage also cuts price target on VRTS to $240 from
$393
    ** MS says traditional asset managers are negatively exposed
to an uncertain macro environment with declining asset prices
and higher risks of recession
    ** Challenging macro backdrop will likely pressure flows,
assets under management levels and earnings of money managers -
MS
    ** Brokerage prefers BlackRock Inc  BLK.N  among traditional
asset managers, given its diversified business model 
    ** VRTS down 32.3% YTD compared with a 5.9% decline in the
S&P 500 index  .SPX 

 (Reporting by Sohini Podder in Bengaluru)
 ((sohini.podder@thomsonreuters.com))