Australia's Magellan Financial drops on ratings downgrade

Magellan Financial

08/01/2024 05:04

** Shares of Magellan Financial Group  MFG.AX  slump as much
as 8.3% to A$8.85, set to see their worst day since Oct. 6 if
losses hold 
    ** Shares emerge as second biggest loser on benchmark 
    ** Citi downgrades fund manager to "Sell" but raises PT to
A$8.10/shr from A$7.00/shr 
    ** Citi analysts say co's weak performance during the six
months to December 2023 is reflected in its expectations for
performance fees to be immaterial in that period
    ** Brokerage says it expects to see some performance fees in
2H24E with signs of improving, but is still negative on the
three- and five-year horizons
    ** 1.2 mln shares change hands, 1.4X of the 30-day average
volume of 917,357 shares 
    ** Shares hit lowest since Dec. 15 
    ** One of 10 analysts rate the stock "buy" or higher, five
"hold" and four "sell" or lower; their median PT is A$8.10 –
LSEG data
    ** Stock had risen ~6.8% in 2023 

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))