News Breaks
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| 21:20 EDT |  | SEIC |
| theflyonthewall.com: | SEI Investments should get a boost as markets start to recover, Barron's says | | Part asset manager, part consultant and part technology provider, a combination that serves SEI Investments (SEIC) well, and one that could benefit investors in the years to come. Like other financial-services companies, SEI has felt significant pain in recent years, thanks to a tumbling stock market. Revenues this year are likely to be down nearly 25% from the company's 2007 peak. Shares have managed to hold their own in the last 12 months, up 6%, but the stock remains relatively cheap on a historical basis. With markets recovering, SEI looks primed to help financial-services firms reassess priorities and deal with the inevitable call for greater regulation, says Barron's. At a recent $17.49, SEI shares currently fetch 15.2 times 2010 earnings estimates, well below the company's 10-year median multiple of 21. The company has been investing in a new technology platform since early in the decade and should begin to see the fruits of that investment in the coming years. SEI hopes the new platform can help it gain market share among European banks. Meanwhile, a recent round of layoffs and the leveling off of technology investments are likely to lower SEI's costs in coming quarters. The resulting earnings leverage promises market-beating returns. Reference Link :theflyonthewall.com |
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