Barclays upgrades Ashmore, downgrades Man Group
Barclays upgraded its stance on Ashmore on Monday but downgraded Man Group as it reviewed UK and European asset managers.
The bank upgraded Ashmore to ‘overweight’ from ‘equalweight’ and lifted the price target to 600p from 520p.
"Despite Ashmore’s fuller multiple, we see the business as attractively positioned to generate earnings per share compound annual growth rate sharply higher than the wider sector through its higher assets under management growth," it said. "This growth is underpinned by the increasing demand for its specialist emerging markets product suite…and its platform efficiency," it said, adding that its strategists are constructive on EM assets through 2020.
Barclays downgraded Man Group to ‘equalweight’ from ‘overweight’ and cut the price target to 165p from 180p.
The bank said it continues to believe that Man’s institutional solutions focused approach to alternative investments is differentiated and so should be able to benefit from the increased demand for alternative investment products.
"However, Man has been unable to achieve those flows through FY19 despite healthy investment performance, and the catalyst for meaningful fresh inflows is currently unclear," it said.
It also pointed to the stock’s more than 10% rebound since its mid-December lows as one of the reasons for the downgrade.
The bank maintained its ‘overweight’ rating on Intermediate Capital Group, its ‘underweight’ on Jupiter Fund Management and its ‘equalweight’ rating on Schroders and Standard Life Aberdeen.
At 1040 GMT, Ashmore shares were up 2.7% at 528p and Man Group shares were down 1.5% at 156.10p.