Goldman downgrades AllianceBernstein on slowing organic growth

Goldman Sachs downgraded AllianceBernstein (AB) to Neutral from Buy with a price target of $40, down from $42.25. The firm continues to see AllianceBernstein as one of the better positioned managers, but is starting to see signs of slowing organic growth across both the company’s equities and fixed income amid softer recent excess performance. This could offset benefits in some of AllianceBernstein’s structurally stronger growth areas, such as private markets, the analyst tells investors in a research note. Goldman expects the company’s organic growth to turn negative in Q2 and to remain below trend through the rest of the year.