Oil prices turn lower as Bessent says U.S. may have Iran deal "today or tomorrow"
Investing.com - UBS downgraded Man Group (LON:EMG) to Neutral from Buy on Wednesday, citing valuation considerations after the stock’s recent performance drove multiples to historical average levels.
The investment bank raised its price target by 10% to 320 pence from 291 pence and increased its 2026 earnings per share estimate by 5%. UBS said the risk-reward profile has become more balanced as the stock no longer trades at a discount.
Man Group trades at 9.8 times forward price-to-earnings, in line with its eight-year historical average and up from a 7 times multiple in early 2025. Excluding performance fee expectations, the company trades at 17 times forward management fee EPS, also matching its historical average and up from 11 times last summer.
Consensus performance fee expectations for 2026 and 2027 rose 85% and 30% respectively since the end of August 2025. UBS forecasts upside to consensus performance fee EPS on higher profit margins, though its performance fee revenue outlook aligns with consensus.
UBS remains 15% to 25% above consensus 2027-2028 earnings estimates but said this premium is largely priced in at current levels. The firm reduced its cost-of-equity assumption by lowering the beta from 1.7 to 1.6 to align with listed peers.