- "While WisdomTree (WETF +3.1%) is generating best-in-class flows, we believe another positive dynamic brewing reflects a favorable fee rate trend given assets under management mix shift," says Citi (presumably William Katz), boosting its price target on the buy-rated stock to $24 from $22.
- This upswing comes at a time of flat/deteriorating trends for many peers, says Citi, giving WETF earnings upside surprise potential.
- The shift/upswing Citi is referring to is the fast flow of funds into WisdomTree's currency-hedged funds (particularly the Europe hedged fund at the moment), which have higher than average fee rates.
- Citi ups its 2015, 2016, and 2017 EPS estimates to $0.56, $0.85, and $1.18 from $0.52, $0.77, and $1.07, respectively.