JP Morgan prefers alternative asset managers, downgrades Schroders

 Source: ShareCast   |   Publish date: Thu, 21 Sep 2017, 05:01 AM   |    >> Read article in News website

(ShareCast News) - JP Morgan reiterated its preference for alternative asset managers after marking the group to market and ahead of a raft of AuM trading updates due from the space before year-end, including interims out of Intermediate Capital Group.
Among those in its coverage universe, the investment bank said it was still most keen on shares of Intermediate (target price: 950p), Man Group (target price: 190p) and Partners Group, sticking to an 'overweight' recommendation on shares of all three.

That, it said, reflected their stronger flow momentum and lower fee and regulatory pressure.

Within the traditional asset management space, its 'top picks' were Standard Life (target price: 540p) and Amundi, with coverage of both recently started at 'overweight' as well, due to their diversified asset offerings, which "should support better flow resiliency through the cycle at a compelling valuation".

Schroders was another manager offering a "broad" product suite, but here JP Morgan said the relative valuation appeared "rich" and hence downgraded the stock from 'overweight' to 'neutral'.

It also marked down its target price for Schroders, from 3,750 to 3,550.

In the same note, JP Morgan stuck by a 'neutral' stance on Hargreaves Lansdown (target price: 1,470p) and Ashmore (target price: 310p).

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