Sell - Price 20.96 on Feb. 9
by Standard & Poor's Equity Research

Lowered to Sell from Hold. EV's acquisition of the tax-advantaged bond assets of M.D. Sass will support average assets, but the low-fee products will likely contribute to an unfavorable asset mix. EV had 66% of its assets in equity accounts at the end of the October quarter, leaving [its] average asset balances more exposed than most peers' to equity-market declines -- which [we see] pressuring revenue throughout fiscal year '09 (Oct.). We are lowering our FY09 [earnings-per-share] estimate to 70 cents from $1.48 and cutting our target by $2 to 16, a premium to peers at 22.9 times forward estimates. Market cap: $2.3 billion.

Solid Investment and undervalued

Eaton Vance (EV) was upgraded from Neutral to Buy at Merrill Lynch. $44 price target. Company still seing strong inflows in a variety of funds.

Eaton Vance (EV) was upgraded from Sell to Neutral, Merrill Lynch said. Company posted solid asset numbers, and the stock trades at a slight discount to its peers.

Eaton Vance (EV) was upgraded from Underweight to Neutral, JP Morgan said. Major risks are already priced into the stock. Company is addressing auction-rate problems, and tax-managed funds could prosper under a Democrat president.

Goldman Sachs said it is cutting its rating on Eaton Vance (EV) to Sell from Neutral due to valuation and economic environment. See bank-loan NAVs and fund flows negatively impacted by deteriorating economic conditions. Price target reduced to $35 from $43.

Strong growth
Strong metrics

Recomended

Eaton Vance was downgraded from Overweight to Underweight, JP Morgan said. Valuation call, plus the company is facing several potential negative catalysts in the near term.

Eaton Vance (EV) was downgraded from Neutral to Sell, Merrill Lynch said. Expects new flow to slow down, and its products are weighted toward bank loans.

Why is EV better than Legg Mason or Goldman? It is a "good" breed, but how do we know it is "best of breed"?