Affiliated Managers downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Affiliated Managers (AMG) to Neutral from Buy with a price target of $191, down from $193. The company has made “meaningful progress” over the years pivoting the business toward faster-growing private markets businesses, but the recent deterioration in Affiliated’s long-only equity affiliates is likely to drive re-acceleration in outflows, which could outweigh benefits of the company’s alternatives book, the analyst tells investors in a research note. Goldman believes equity organic “decay” and performance fee headwinds will weigh on the company’s EBITDA growth.