Eaton Vance has enjoyed a nice run due to the buyout of Nuveen. However, Eaton Vance is a much different company. From a valuation standpoint EV is trading at 50x trailing and 21x forward. Whereas Nuveen post-buyout is at 26x trailing and 20x forward. This is expensive when compared to AB and LM. Therefore, anyone who would buyout this company would have to pay a premium over something that is already very expensive. I believe that since Asset Management companies are valued based on assets under management, those who are buying a Nuveen or Eaton Vance for their large municipal bond management arms, may want to wait for a correction to occur in the equity markets - which is creating a larger NAV than they are comfortable with buying. I look for this to get knocked down to 37 where it can be reevaluated for attractiveness.
$44.8 (07/11/07)
