Morningstar trims PT on Australia's Magellan Financial following executive's exit

Magellan Financial

03/02/2025 20:37

** Analysts at Morningstar see higher redemptions for
Australian fund manager Magellan Financial Group  MFG.AX 
following a key executive's departure 
    ** Investment research platform cuts stock PT to A$8.90 from
A$10.20; MFG closed at A$9.49 on Monday
    ** Magellan last week said that its head of investments,
Gerald Stack, would step down in July after having been with the
company for 18 years
    ** "Stack's departure raises the risk of redemptions, given
it could take time for investors to gain confidence in the new
team" - Morningstar
    ** Morningstar anticipates A$8 bln ($4.95 bln) in one-off
redemptions in fiscal 2025-26, reflecting about 22% of MFG's
total funds under management
    ** Stock down 14.7% this year, as of the last close


($1 = 1.6163 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))