MS prefers exchanges among financial stocks as tariffs compound uncertainties

DWS GmbH & Co KgaA

09/04/2025 14:10

** Morgan Stanley tempers its view on diversified financials to "in-line" from "attractive" due to increased recession risks and macro uncertainty

** Its relative near-term preference is on stock exchanges given their strongest revenue and earnings resilience, with Euronext ENX.PA as its top pick

** It also likes London Stock Exchange LSEG.L and UK-based investment company 3i III.L

** Heightened economic risks triggered by tariffs will affect traditional and alternative asset managers, MS says

** It sees subdued carry fees in 2025, along with weak deal activity and lower risk appetite among clients

** Among alternative asset managers, it cuts EQT EQTAB.ST and CVC Capital Partners CVC.AS to "equal weight" on their sensitivity to carry/performance fees

** Intermediate Capital ICGIN.L, Bridgepoint BPTB.L and Antin Infrastructure Partners ANTIN.PA should be more modestly affected, it says

** Intermediate Capital remains its preferred play among asset managers due to its relatively more defensive earnings

** Among traditional asset managers, it cuts Schroders SDR.L and Jupiter Fund Management JUP.L to "underweight" as their higher equity exposure drives earnings risks

COMPANY
RATING
OLD RATING
3i
overweight
-
Aberdeen ABDN.L
underweight
-
Amundi
overweight
-
Ashmore Group ASHM.L
equal-weight
-
Bridgepoint Group
equal-weight
-
CVC Capital Partners
equal-weight
overweight
Deutsche Boerse DB1Gn.DE
equal-weight
-
DWS Group
equal-weight
-
EQT
equal-weight
overweight
Euronext
overweight
-
Intermediate Capital Group
overweight
-
Jupiter Fund Management
underweight
equal-weight
London Stock Exchange
overweight
-
Man Group EMG.L
equal-weight
-
Partners Group PGHN.S
equal-weight
-
Schroders
underweight
equal-weight

 (Reporting by Marta Frackowiak)

 ((marta.frackowiak@thomsonreuters.com))