Goldman Sachs Downgrades AllianceBernstein Holding (AB) Stock to Neutral

AllianceBernstein Holding L.P. (NYSE:AB) is one of the 10 Best Value Stocks to Buy According to Billionaires. On June 27, Goldman Sachs downgraded the company’s stock to “Neutral” from “Buy” with a price objective of $40, down from the prior target of $42.25. While the firm sees AllianceBernstein Holding L.P. (NYSE:AB) as one of the better-positioned managers, it is now seeing signs of slowing organic growth throughout both the company’s equities and fixed income.

Goldman Sachs Downgrades AllianceBernstein Holding (AB) Stock to Neutral

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The analyst believes that this can offset benefits in some of AllianceBernstein Holding L.P. (NYSE:AB)’s structurally stronger growth areas, like private markets. The firm expects AllianceBernstein Holding L.P. (NYSE:AB)’s organic growth to turn negative in Q2 and to be below trend across the remainder of the year. AllianceBernstein L.P. and AllianceBernstein Holding L.P. (NYSE:AB) reported that preliminary AUM rose to $803 billion during May 2025 from $781 billion at April end. The rise of 2.8% in month-end AUM was because of market appreciation, which was partially mitigated by net outflows. Coming to the channel, private wealth saw slight inflows, offset by institutional and retail outflows.

AllianceBernstein Holding L.P. (NYSE:AB) released Q1 2025 results, wherein the retail channel gross sales exceeded $25 billion for the third quarter in a row, resulting in the organic gains for the 7th consecutive quarter. Notably, channel inflows came in at $0.9 billion, which were diversified throughout asset classes with active equities, fixed income, and alternatives/multi-asset growing organically in Q1 2025.

While we acknowledge the potential of AB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AB and that has 100x upside potential, check out our report about this cheapest AI stock.

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