Analyst Note| Greggory Warren, CFA |
While there was little in no-moat AllianceBernstein's third-quarter results that would alter our long-term view of the firm, we've raised our fair value estimate to $30 per share from $28 after adjusting for better results than we had been projecting so far this year. AB closed out the September quarter with $630.8 billion in AUM, up 5.1% sequentially and 6.5% on a year-over-year basis. Net inflows of $3.1 billion were not only an improvement on the first and second quarters (which saw $5.6 billion and $3.3 billion in outflows, respectively) but were above the quarterly run rate of $2.5 billion in inflows seen over the previous eight quarters. From a product perspective, fixed-income outflows (of $0.5 billion in AB's case) were offset by positive equity flows (of $1.2 billion) and inflows (of $2.4 billion) into other products during the period. On a channel basis, the institutional channel drove most of the company's inflows, reaching $2.1 billion during the quarter.