Ashmore Group Shares Decline as Analysts Get Bearish

Ashmore Group (LON: ASHM) shares have come under pressure in the last month as a wave of analyst downgrades signals growing caution over the emerging markets asset manager’s outlook. 

The stock, which has already struggled to gain momentum this year, has been hit by a series of negative recommendations across major investment banks over the past six weeks. It is down over 17% in the last month.

Most recently, Morgan Stanley cut its rating on Ashmore to Underweight from Equal Weight, trimming its price target to 148p from 165p. 

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The bank said it is positioning for a broader capital markets recovery but sees Ashmore as a “relative” underperformer within the sector. The downgrade adds to concerns that the firm may lag peers as investor appetite shifts elsewhere.

Earlier in November, Deutsche Bank took a bearish stance, moving Ashmore to Sell from Hold. It cut its target price to 130p from 140p, arguing that the shares had been trading at an “unjustified” premium to traditional asset managers. 

The bank suggested the valuation no longer reflects fundamentals in the current market environment.

Meanwhile, in October, UBS moved Ashmore to Neutral from Buy on valuation grounds, despite raising its price target to 180p.

Around the same time, Barclays downgraded the stock to Underweight from Equal Weight, noting that multiples looked full following a short-term rally. Barclays increased its target slightly to 150p, but warned that upside appeared limited.