Canaccord Genuity nudges up price target on Ashmore

Analyst at Canaccord Genuity slightly raised their target price on investment management firm Ashmore Group from 243.0p to 430.0p on Monday after the company's recent trading update indicated a "continued slowdown" of net outflows.

Canaccord pointed out that net outflows had narrowed to $800.0m from $2.2bn in the fourth quarter and $3.6bn in the third and now "cautiously forecast" small net inflows of $2.1bn for the 2021 trading year as a whole.

The Canadian bank stated that Ashmore's investment performance relative to benchmarks over one year had improved in 12 of 13 of its themes.

"Consequently, performance over three years is also improving," said the analysts, which did also note that Ashmore's flows can be "volatile" given their largely institutional nature.

However, Canaccord added that historical experience suggested that net flows were capable of rebounding "strongly" when investment performance improves, after a short lag.

The analysts kept their 'buy' rating on the stock unchanged.