Ninety One Shares: Here’s What Could Push the Stock Even Higher

JPMorgan upgraded Ninety One (LON: N91) to Neutral from Underweight in a note on Tuesday, lifting its price target for the stock to 178p from 132p, citing signs of a potential turning point for the asset manager’s growth.

The upgrade follows what JPMorgan noted as the first positive net flow print since March 2022, marking a possible inflection in Ninety One’s asset trends. 

The firm also highlighted improving sentiment toward emerging markets and strong year-to-date gains in the MSCI Emerging Markets Index as key supporting factors.

According to JPMorgan, the combination of these developments suggests an inflection point for Ninety One's net flows and assets under management growth. 

That said, analysts remain cautious about the stock’s potential from here, noting that shares have already rallied sharply over the last three months, up almost 25%.

JPMorgan told investors that, given the recent strong performance of the stock and the current geopolitical risks, it will need to see improved flows beyond those embedded in its updated forecasts for the shares to outperform from current levels.

Ninety One, which specialises in emerging market investments, has been under pressure recently. In April, Deutsche Bank analyst David McCann maintained a Hold rating on the stock, saying the company is “structurally challenged.”

McCann stated: “‘As a traditional asset manager – without a passive or notable alternatives offer – we think Ninety One operates in the part of the industry most under pressure.”