UBS upgrades Man Group to 'buy'

(Sharecast News) - UBS upgraded Man Group to 'buy' from 'neutral' on Thursday and lifted the price target to 365p from 335p as it pointed to a solid performance from AHL, the company's suite of trend-following funds. "We believe EMG's share price does not reflect the recent positive performance across its AHL strategies (+7%) over the past six weeks," UBS said. "In our view, this offers an attractive entry point as we expect material upgrades to consensus EPS with Q3 coming to a close at month end."

In the longer term, UBS said it views Man Group's business model positively and thinks the company, through its technology, has a sustainable competitive advantage over peers.

"We also expect institutional investors to increase allocations to Man Group's liquid alternatives and credit strategies in the coming years," it said.

UBS expects the next catalysts to be upgrades to consensus earnings per share in early October as the sell-side marks its models to market to reflect AHL's recent performance and Man Group's Q3'26 AUM release on 16 October.

At 1015 BST, the shares were up 5.3% at 333.51p.