UPDATE 1-Wachovia initiates Franklin Resources with outperform
May 28 (Reuters) - Wachovia Capital Markets began coverage of Franklin Resources Inc (BEN.N: Cotización) with an "outperform" rating, saying its shares were among the most attractively priced in the asset manager sector.
Eaton Vance Corp (EV.N: Cotización) was, however, initiated with a "market perform" rating as the company's shares had rallied sharply in recent months.
Wachovia said it would wait for a pullback in Eaton's shares before getting more aggressive on the stock.
On Franklin, the brokerage said the company was set to benefit from a cyclical recovery in the market and that it had considerable financial flexibility to issue debt for share buybacks or for acquisitions.
Wachovia also resumed coverage on T Rowe Price Group Inc (TROW.O: Cotización) and Invesco Ltd (IVZ.N: Cotización) with "market perform" ratings. (Reporting by Santosh Nadgir in Bangalore; Editing by Anil D'Silva)
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