Morningstar cuts outlook, PT for ASX-listed GQG Partners

GQG Partners

15/05/2023 20:44

** Morningstar cuts its 2023-27 outlook and fair value
estimate for investment firm GQG Partners Inc  GQG.AX 
    ** Brokerage cuts forecast for company's projected
cumulative net inflows from 2023-2027 by around 20%, cumulative
operating income by roughly 5%
    ** Morningstar expects near-term net inflows to soften due
to GQG's subdued performance starting from the end of 2022,
alongside the industry-wide redemptions from listed equities
managers
    ** Brokerage cuts fair value est for ASX-listed shares of
GQG to A$1.90 per share from A$2.00
    ** Morningstar says GQG's current near-term underperformance
likely transient and unlikely to lead to sustained redemptions 
    ** "GQG Partners is the only boutique manager among the
asset managers under our Australia and New Zealand coverage that
has a strong long-term track record and continues to garner net
inflows" - Morningstar
    ** Brokerage adds GQG continues to make good strides in
diversification, having continued to broaden its subadvisory and
related distribution opportunities
    ** 6 of 7 analysts rate the stock "buy" or higher, 1 "hold"
and none "sell" or lower; median PT A$2.05 – Refinitiv
    ** GQG stock up 3.6% YTD, as of last close

 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))