Federated Hermes price target raised to $42 from $39 at RBC Capital

RBC Capital raised the firm’s price target on Federated Hermes (FHI) to $42 from $39 and keeps a Sector Perform rating on the shares as part of a broader research note previewing 2025 for U.S. Asset Managers. The firm forecasts 2025 S&P500 year-end target of 6,600 while noting that asset managers can benefit from operating leverage, also stating that there is a favorable set up for M&A activity in the space, the analyst tells investors in a research note. RBC adds that Federated could see meaningful managed asset growth, mainly driven by institutional investor fund flows, as rates start to decline, though it sees risk-reward on the stock as “balanced”.