Stock Market

Ashmore shares climb on upgrade to Buy

Investing | Fri, Mar 14 2025 08:47 PM AEDT

1695367561_650d4189d32c8_1692951951_64e8658fe70f4_breaking_news_600.png
Image Source: Sivastatz

Investing.com -- Shares of Ashmore Group Plc (LON:ASHM) rose by 6.43% following an upgrade by UBS analysts to a Buy rating, with a new price target suggesting a 20% upside.

The financial services firm has been recognized for its potential to benefit from a shift in investor allocations away from U.S. capital markets and a weaker U.S. dollar, which could lead to increased inflows into emerging market debt and equity strategies.

The upgrade comes after Ashmore experienced more than five years of consecutive outflows, excluding low-margin overlays. However, the company's flow picture has shown significant improvement in 2024, a trend that has persisted despite the stronger U.S. dollar post-U.S. presidential elections.

Analysts expect institutional investor allocations to emerging market (EM) debt and equity strategies to rise, following a period of multi-decade lows in the previous year.

UBS analysts have raised their EPS estimates for 2026/27 by 2%/6%, accounting for a more optimistic flow outlook and increasing their 2025/26 flow projections by 300-400 basis points as a percentage of AUMs.

"The improvement in recent fund flows, the likelihood for an acceleration in fund flows as investors reallocate from the US and the lower valuation the market ascribes to ASHM's asset management business, creates positively skewed risk-reward profile," UBS said in a note.

The firm's valuation, excluding capital surplus, is near record lows, which, coupled with the improved flow momentum and investor rotation out of U.S. capital markets, presents a favorable risk-reward scenario for the stock.

This article first appeared in Investing.com

Market Updates

Successful Independent Study of the NanoVibronix UroShield® Device Published in the Australian and New Zealand Continence Journal

UroShield Cited as Effective in Preventing CAUTIs and Blockages, Having a Major Impact on Quality of Life and Reducing Healthcare ...

Business Wire | Sat, Mar 15 2025 02:00 AM AEDT

Read More
Stock Market

Ulta Beauty shares jump after results top estimates amid strong holiday demand

Investing.com - Shares in Ulta Beauty (NASDAQ:ULTA) surged in premarket U.S. trading on Friday after the cosmetics ...

Investing | Sat, Mar 15 2025 12:13 AM AEDT

Read More
Stock Market

American Express rating raised at Baird following persistent market sell-off

Investing.com -- Baird analysts upgraded American Express (NYSE:AXP) to Neutral following a “persistent sell-off in the broader market” ...

Investing | Sat, Mar 15 2025 12:11 AM AEDT

Read More
Stock Market

UBS warns $14tn in U.S. assets is at risk amid fading exceptionalism

Investing.com -- UBS analysts warned in a note Friday that “fading US exceptionalism” could put “~$14tn of unhedged US ...

Investing | Sat, Mar 15 2025 12:03 AM AEDT

Read More
Stock Market

S&P 500 rallies will likely be sold until Trump or the Fed pivot: Barclays

Investing.com -- Despite improved technicals that could support short-term rebounds, "rallies will likely be sold until Trump or the ...

Investing | Fri, Mar 14 2025 11:35 PM AEDT

Read More