HMC Capital shares climb as Jarden calls recent decline 'overdone'
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The news: HMC Capital shares climbed in morning trade after Jarden upgraded its rating on the investment manager, calling its share price declines over the last three months "overdone".
The numbers: HMC shares were up 0.9% to $7.43 at 11:15am AEDT, having retreated by more than 40% since a high of $12.54 at the end of November last year.
Jarden upgraded its rating on HMC from 'underweight' to 'overweight' but trimmed its target price from $9.95 to $8.65.
The context: Jarden analysts said that while ongoing challenges remain in two of its listed funds — HealthCo Healthcare and Wellness REIT and DigiCo Infrastructure REIT — the weakness in HMC's share price looks overdone. The analysts expect progress in both HealthCo and DigiCo, as well as ongoing progress in the broader business.
Volatility and risk profile will likely remain elevated in an uncertain macro environment, they noted, which is reflected in Jarden's reduced target price.
The source: Jarden research
