Ashmore Shares Fall After Results as Cavendish Reiterates Sell Rating

Ashmore Group (LON: ASHM) shares have declined so far on Monday after the emerging markets asset manager’s full-year results drew a cautious response from analysts, with Cavendish reiterating a sell rating.

The stock was last down 1.9% at 214.2p.

Ashmore reported that assets under management rose 13% to $54 billion in the year ended June 30, helped by net inflows of $2.7 billion and strong investment performance.

Profit before tax climbed 17% to £126.9 million, while diluted earnings per share rose 28% to 15 pence. The company maintained its total dividend at 16.9 pence a share.

Chief Executive Mark Coombs said “Ashmore’s diversified global platform and focused emerging markets strategy delivered meaningful growth in AuM and profits during the year.”

He added that the group was well placed to capture future flows as capital shifts toward emerging markets.

Following the report, Cavendish analyst Rahim Karim was less positive, describing the numbers as mixed. He noted that while reported EPS was broadly in line with consensus thanks to stronger seed capital gains, “the underlying performance was below market expectations.”

Adjusted net revenue fell 7% to £135.6 million, about 3% below his forecast, with second-half performance fees of just £0.2 million.

Karim kept his sell rating, arguing the shares have re-rated sharply over the past nine months on expectations of an inflection in emerging market flows.

“This momentum is more than adequately reflected in the rating and see more attractive opportunities across the sector,” he wrote, noting the stock trades at 31.4 times forecast fiscal 2027 earnings.