Good article on Morningstar yesterday; Learn To InvestStocksSpecial ReportsLICsCreditFundsAll Analyst ReportsStar Ratings LimitationsKiwiSaver ReportsFund ScreenerAbout our CategoriesFunds FAQETFsToolsSMSFsVideo ArchiveArticle ArchiveAboutNewsMagellan’s fair value cut as fund outflows tipped to continueLewis Jackson | 12 Oct 2021Text size Decrease Increase | Share Email to FriendA run of poor performance has led Morningstar to cut its fair value for Magellan on concerns investors will take their money elsewhere. But analysts remain bullish, saying the market is overly pessimistic.“We believe this pessimism is overdone," says Morningstar equity analyst Shaun Ler."At current prices, it's like you're buying a Ferrari at Honda prices.”He lowered the global asset manager's fair value estimate by 9% to $50.50 last Wednesday after forecasting $7.5 billion net will exit Magellan Financial Group (ASX: MFG) in the next three years.The stock closed Tuesday at $33.04, a 34% discount to the updated fair value.However, Ler remains bullish, saying the market is pricing in far worse: the fund manager missing its 9% return target, measured across all its funds, and outflows continuing for five years, to the tune of $20 billion.
MFG Price at posting:
$32.83 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)