Goldman upgrades WisdomTree to Neutral on accelerating flows

Goldman Sachs analyst Alexander Blostein upgraded WisdomTree (WT) to Neutral from Sell with a price target of $11.90, up from $9.50, implying 9% upside to the current stock price. The firm’s more positive view is predicated on accelerating flows with increasing breadth of organic growth by strategy, and a deceleration of management fee rate compression. WisdomTree has delivered strong organic growth in recent years, generating 9% average annual organic growth over the past three years, the analyst tells investors in a research note. Goldman sees the company’s mix of flows becoming increasingly diversified across categories, driving “meaningful improvement” in its organic base fee growth.