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Research Alert: CFRA Keeps Buy Opinion On Shares Of Alliancebernstein Holding Lp
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Research Alert: CFRA Keeps Buy Opinion On Shares Of Alliancebernstein Holding Lp
Oct 31, 2025 9:10 AM

11:50 AM EDT, 10/31/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target price of $46, valuing the shares (which represent partnership interests) at 11x our newly initiated '27 adusted EPS estimate of $4.20 and at 12.1x our '26 EPs estimate of $3.80 (trimmed today by $0.10), versus the shares' 5YR average forward multiple of 12.3x and the peer average of 13.3x. We trim our '25 EPS estimate by $0.12, to $3.37. AB posted Q3 EPS of $0.86 versus $0.77, compared to our $0.92 EPS estimate and the $0.85 consensus forecast. Q3 revenues advanced by 4.8%, to $1.14 billion in Q3, and this compares to our forecast of 4% to 8% "normalized" revenue growth for 2025, which we maintain. These results included the mid-2024 sale/spin-off of Bernstein Research Services. That aside, base fee revenues advanced by 4.8% year-over-year in Q3 to around $852 million. Performance fee revenues declined by nearly 24% in Q3 to $22 million. Distribution revenues climbed over 11% in Q3, however, to reach over $210 million. We forecast revenue growth of 5% to 9% in 2026, and expect some modest operating margin expansion. We view the shares (which currently yield 8.6%) as undervalued versus peers.

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