European asset managers’ price targets nudged higher ahead of results season


European asset managers have been put under the microscope by Credit Suisse, which has nudged up its price targets for abrdn PLC (LON:ABDN), Man Group PLC (LON:EMG) and Schroders PLC (LON:SDR).

The second quarter of 2021 saw supportive markets for asset management but Credit Suisse (CS) is expecting muted or negative net inflows from most of them; DWS, Man and Schroders could e exceptions to the rule, CS added.

Performance fees are likely to be the key point of differentiation in the results for asset managers, with CS predicting Man Group will beat consensus first-half earnings expectations.

“In terms of earnings, we highlight Man Group as our strongest candidate for an upside surprise, and Jupiter and Amundi for modest downside surprise risk,” the Swiss bank said.

The price target for abrdn – the horrendous new name for Standard Life Aberdeen – has been raised to 260p from 250p; the target for Man is now 10p higher and 220p and the price target for Schroders has been bumped to 3,430p from 3,270p.

Meanwhile, UBS has adjusted its 2021-23 earnings per share (EPS) estimates for European asset managers to reflect the improved second-quarter (2021) environment.

The only asset manager where it has lowered numbers is Ashmore Group PLC (LON:ASHM), where the 2021-23 EPS forecasts have been trimmed by 1-2% to reflect weaker inflows and a stronger pound.

Despite this, it rates Ashmore a buy with a price target (PT) of 465p, along with Schroders (PT 175p) and Man (214p). It is neutral on abrdn (300p) and Jupiter (295p).


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