Ashmore Group Shares: Analyst Bearish Despite Strategic Partnership With Japan Post Insurance

Cavendish maintained its sell rating on Ashmore Group (LON: ASHM) shares in a note, despite welcoming a newly announced strategic partnership with Japan Post Insurance, citing the asset manager’s persistent premium valuation as a key concern.

Ashmore announced Tuesday that Japan Post Insurance intends to invest an additional $1 billion into a range of Ashmore-managed emerging market funds, building on an existing relationship between the two firms.

As part of the deal, Japan Post Insurance will also acquire an equity stake of up to 2.9% in Ashmore through open market purchases.

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Cavendish analyst Rahim Karim described the additional asset flows and equity stake as positive developments but stopped short of upgrading the stock.

“We maintain our Sell rating in the meantime, given the Group’s persistent premium rating of >30x FY26E P/E,” Karim wrote. The firm said it will review its forecasts following the announcement.

Karim noted that the partnership reinforces Ashmore’s 15-year presence in Japan, where the firm has operated since 2010, and that Japan Post Insurance’s additional investment is expected to promote growth across emerging market fixed income, emerging market impact debt and listed emerging market equities.

Ashmore shares jumped 6.7% on Tuesday following the announcement and added a further 5.9% on Wednesday. Despite those gains, the stock has slipped 3.8% over the past month. Year-to-date, however, Ashmore shares remain up 26.9%, a run that Cavendish appears to view as having stretched the valuation beyond what fundamentals justify.