Analyst Bruce Hamilton of Morgan Stanley maintained a Hold rating on Man Group plc (EMG – Research Report), with a price target of p251.00.
Bruce Hamilton has given his Hold rating due to a combination of factors influencing Man Group plc’s current financial standing and future prospects. The company has shown a modest performance fee beat, with fees reaching $310 million compared to the consensus of $272 million. However, the year-to-date performance of key high-margin AHL funds has been slightly negative, ranging from -2% to -3%, which poses a risk to the normalization of performance fees projected at around $370 million.
Despite trading at a discount compared to the broader European asset management sector, with a price-to-earnings ratio of approximately 8x for 2025, the company’s assets under management (AuM) fell short of expectations, coming in at $168.6 billion against the anticipated $171.2 billion. Additionally, net redemptions amounted to $3.3 billion, aligning with the consensus but still reflecting a challenging environment. While the company has maintained its dividend and announced a $100 million share buyback, these factors collectively suggest limited upside potential, leading to the Hold rating.
According to TipRanks, Hamilton is a 4-star analyst with an average return of 10.6% and a 66.23% success rate.