Och-Ziff Capital Management Group LLC (NYSE:OZM) was a notable mover during Tuesday’s trading session. The stock was lower by close to 0.16% on higher volumes, which were 0.9 times the daily average. The stock has been trending lower since the beginning of the year forming lower tops and lower bottoms, which are indicative of the fact that bears, are in total control. The stock currently trades below all daily moving averages. The MACD indicator is showing first signs of a reversal indicative of the return of buying interest, which is bullish. Traders see the stock heading to $6.48 in the near term.
The share price of Och-Ziff Capital Management Group LLC (NYSE:OZM) suffered a steep fall following the announcement of its third quarter results early this month. According to a research report released by the KBW analysts Robert Lee and Ann Dai, the stock holds little or negligible value to future incentive generation owing to its sharp decline.
High risk-appetite
Moreover, the analysts opine that the investment in the stock is appropriate for investors with high risk appetite. The research firm analysts said that the stock’s current risk/reward profile is suitable for investors, who have patience and are comfortable in taking risks. Based on this opinion, the research firm has trimmed the price target for the company, while raising the outlook on the stock to Outperform.
The report raised the rating on Och-Ziff Capital Management Group LLC (NYSE:OZM) to Outperform from Market Perform. However, the analysts have slashed the price target to $7.50 from $8.50. The new price estimate signifies a 25% potential upside over the stock’s current market price.
Few catalysts
In their research report, the analysts noted that the concerns and risks surrounding the company’s over flow trends coupled with deteriorated distribution expectations and ongoing FCPA investigations exists, which make the stock optimal for investors with a long-term horizon. The analysts added that the current market price of the stock is low from a long-term perspective. The analysts warned that the company may suffer certain short or intermediate challenges, which could impact its stock price.
Having said that, the KBW analysts did mention some of the catalysts for Och-Ziff Capital Management Group LLC (NYSE:OZM). According to them, the resolution of the ongoing investigation could be a big boost provided that the settlement is not damaging to the franchise or is prohibitive.
The stock price of the company inched up by 0.32% to $6.18 during the last trading session.
