Marina Massuti, an analyst from Morgan Stanley, maintained the Hold rating on Ashmore Group PLC (ASHM – Research Report). The associated price target is p162.00.
Marina Massuti’s rating is based on several key considerations regarding Ashmore Group PLC’s recent performance and market conditions. The company experienced significant institutional outflows amounting to $3.9 billion, primarily due to large redemptions in local currency mandates. Despite these outflows, there were some positive developments, such as mandate wins from Asian institutions and inflows into external debt mandates and alternatives. However, these positive aspects were not enough to offset the overall negative impact of the outflows.
Furthermore, the fund’s performance has remained stable in the short term and has shown improvement over the longer term, particularly in the five-year performance metrics. Nonetheless, the outlook for Ashmore remains uncertain due to macroeconomic factors such as market volatility, increased tariffs, and changes in global trade, which contribute to client de-risking and uncertainty in flow recovery. Additionally, Ashmore’s current trading multiple is higher than the sector average, which may limit its attractiveness to investors in the near term. These factors combined led Marina Massuti to assign a Hold rating to Ashmore Group PLC.
In another report released on April 10, Jefferies also maintained a Hold rating on the stock with a p140.00 price target.