Morningstar downbeat on Australia's Magellan Financial

Magellan Financial

15/02/2024 18:52

** Brokerage Morningstar remains downbeat on asset manager
Magellan Financial  MFG.AX , citing the co's worse-than-expected
H1 performance 
    ** "We retain our fair value estimate for no-moat Magellan
at A$9.60 per share" - Morningstar
    ** The brokerage expects a decline in group pretax profits
(on a standalone basis) of around 10% per year over the medium
term
    ** Morningstar says revenue is expected to decline with the
compression in funds under management and fee margin compression
    
    ** "We haven't found any compelling evidence that would
refute our expectation for Magellan’s earnings to decline" -
brokerage
    ** One of 10 analysts rate the stock "buy", three "hold" and
six "sell" or lower; their median PT is A$8.10 – LSEG data
    ** MFG up 0.4% YTD, as of last close

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))