Morgans expects market volatility and investor caution to have impacted fund flows for ASX-listed fund managers through the 1Q of 2022 and then carry over into the 2Q.
After a mark-to-market exercise, the broker upgrades the FY22 EPS forecast for Magellan Financial by 1% and then by around 6% for FY23 onwards. The target rises to $16.73 from $15.78. Nonetheless, further significant outflows are expected.
The analyst believes the risk reward balance is unfavourable and retains a Hold rating.
Sector: Diversified Financials.
Target price is $16.73.Current Price is $15.35. Difference: $1.38 – (brackets indicate current price is over target). If MFG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
