Australia's Magellan Financial slides after Macquarie downgrades to 'underperform'

Magellan Financial

18/09/2025 02:47

** Shares of asset manager Magellan Financial Group MFG.AX fall as much as 6.4% to A$9.850, their lowest since July 23

** Stock posts its biggest intraday drop since April 7 and is among the worst performers on ASX 200 benchmark index .AXJO

** Analysts at Macquarie downgrade MFG to "underperform" from "neutral"

** Brokerage sees downside risks due to lower associate profits, higher sub-advisory fees and lower distribution income

** Macquarie also sees risks to infrastructure net flows over the next six months due to portfolio manager change, which may trigger review of fund ratings

** Brokerage trims EPS estimate by 0.4% for FY26, by 5.6% for FY27 and 9.7% for FY28

** Stock down 9.7% YTD, including day's move

 (Reporting by Himanshi Akhand in Bengaluru)

 ((Himanshi.Akhand@thomsonreuters.com;))