Why Goldman Sachs Says AllianceBernstein Holding Stock Is Underappreciated

Shares of AllianceBernstein Holding LP (NYSE: AB) remained volatile after receiving an upgrade from BofA Securities analyst Craig Siegenthaler.

Following the recent pullback, the stock did not fully reflect the company’s relatively durable earnings growth outlook over the next couple of years, according to Goldman Sachs.

The AllianceBernstein Analyst: Alexander Blostein upgraded the rating for AllianceBernstein from Neutral to Buy, while revising the price target to $36.75.

The AllianceBernstein Thesis: The stock has lost around 12% year to date, with the market underappreciating the company’s “industry-leading organic fee growth prospects and its differentiated operating margin expansion,” Blostein said in the upgrade note.

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“This is in contrast to most of AB’s peers where flow pressures remain significant, blended fee rates are mostly trending lower and margin expansion is likely to be limited over the near-term,” the analyst wrote.

“We expect AB’s organic mgmt fee growth to expand further in 2024 and 2025 to closer to mid-single digits,” he added.

AB Price Action: Shares of AllianceBernstein had risen by 0.033% to $30.52 at the time of publication Tuesday.

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