Morgans upgrades GQG, maintains 'hold' on Magellan
Make us a preferred source
Make us a preferred source on Google
The news: Morgans analysts have upgraded their rating on GQG Partners but maintained their view on Magellan Financial Group after both investment managers outlined funds under management at December-end.
The numbers: The brokerage changed its rating on GQG to ‘add’ from ‘hold’ previously, and trimmed the 12-month price target to $2.45 after the stock tumbled on Wednesday. It kept a ‘hold’ rating on Magellan with an $11.64 price target.
GQG shares are unchanged at $2.07, while Magellan shares are down 1.4% to $10.83 in early trading on the ASX.
The context: Morgans cited attractive value for GQG, with the stock tumbling nearly 10% during the trading day on Wednesday after the investment manager outlined outflows of $200 million in December in the wake of US government bribery charges against its key portfolio holding Adani Group. However, its share price pared losses and ended 4.61% lower.
The analysts said current prices reflect uncertainty around the short-term fund flows but GQG is structurally well placed to benefit from improved markets with long-term investment performance intact.
Magellan reported its first monthly drop in funds since August 2024, with outflows of $400 million in December. The analysts said the investment manager’s flows have stabilised over FY24, with growth options now becoming more evident, outlook improving.
The source: Morgans research
