The latest trading update showed Magellan is still seeing inflows, on top of stronger performance fees. Morgan Stanley analysts highlight the key global equities fund performed circa 6% better than its benchmark over 6mths and circa 8.5% over 12mths.
The analysts see significant upside for short term forecasts, but also mild downside risk for H2 and FY20 given lower Funds under Management (FUM), unsurprising given weak global equity markets.
Underweight rating retained. Industry view is In-Line. Price target unchanged at $21.50.
Sector: Diversified Financials.
Target price is $21.50.Current Price is $25.67. Difference: ($4.17) – (brackets indicate current price is over target). If MFG meets the Morgan Stanley target it will return approximately -19% (excluding dividends, fees and charges – negative figures indicate an expected loss).