TD downgrades AllianceBernstein with tender capping upside

TD Cowen last night downgraded AllianceBernstein (AB) to Hold from Buy with a price target of $38.50, up from $38. The price target aligns to the tender price announced by Equitable Holdings (EQH), the analyst tells investors in a research note. TD would not expect to see the tender price rise, thus capping residual upside in AllianceBernstein shares, particularly given what it believes is likely to be further reduction in an already low float. Further, the tender could increase turnover risk for AllianceBernstein, contends the firm.