WisdomTree's Strong AUM Inflows Support Higher Valuation, Oppenheimer Says

MT Newswires Live08-26

WisdomTree (WT) continues to benefit from strong assets under management inflows and recent strategic acquisitions, supporting a more favorable valuation outlook, Oppenheimer said in a Wednesday note.

According to the note, WisdomTree has recorded positive inflows in more than 66% of months since the 2016 bottom, with $1.6 billion in month-to-date inflows as of Aug. 21, indicating August is also likely to post positive net inflows.

Oppenheimer said the company's underlying growth is driven by both fund inflows and asset appreciation, with sustained inflows being the key metric to monitor because they reflect management's ability to anticipate investor demand for exchange-traded products.

WisdomTree increasingly merits a growth-oriented asset manager valuation, supported by consistent inflows, asset growth and recent strategic acquisitions, the note said.

Oppenheimer maintained its outperform rating on the stock and raised its price target to $27 from $22.

WisdomTree shares were up more than 2% in Wednesday trading.

Price: 24.73, Change: +0.60, Percent Change: +2.47

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