RBC Capital downgrades M&G to ‘sector perform’
M&G
207.50p
16:45 20/09/24
RBC Capital Markets downgraded M&G on Tuesday to ‘sector perform’ from ‘outperform’ and cut the price target to 200p from 220p as it turned more cautious on asset management.
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The bank said headwinds for asset management now appear more acute and persistent than it expected.
"While acknowledging positive impacts of the higher rate environment on M&G’s Life insurance earnings and capital generation, which supports upgrades to group adjusted operating profit, our cautious outlook for AM means we are below consensus for 2024E/25E," it said.
"Given M&G’s year-to-date total shareholder return of 20%, and the material de-rating of UK Life and Euro AM sector peers with each sector returning -4% YTD on average, we reduce our conviction in the shares."
At 1250 GMT, the shares were down 2.7% at 202p.