AllianceBernstein: Record AUM In Q2, Big Yield And Steady Fundamentals

AllianceBernstein Holding L.P. remains a Buy, with units attractively priced despite underperformance versus the S&P 500 and Financials sector YTD.

Q2 results were soft, with EPS and revenue slightly missing expectations, but AUM reached a record $905.5 billion and net flows turned positive.

AB offers an 8.8% yield, steady EPS growth guidance, and valuation supports a $45 price target using a 12x P/E on $3.75 forward EPS.

Technical trends have deteriorated, with resistance near $39 and likely trading range between $36 and $39 in coming months.

AllianceBernstein Holding L.P. ( AB ) units were little changed immediately after a slightly weaker-than-expected Q2 report . Big picture, they have returned just 3% so far this year, lagging the Financials sector.