Federated Hermes downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank downgraded Federated Hermes (FHI) to Hold from Buy with a price target of $43, down from $45. The firm says its bullish thesis on money market fund inflows during this rate cut cycle has mostly played out. This reduces the likelihood that Federated’s money market assets under management can continue its double-digit growth profile realized during the recent 2023-2024 period, the analyst tells investors in a research note. Deutsche Bank does not expect substantial money fund growth from here, which it says had been a differentiating positive aspect for Federated Hermes.