Most companies in the U.S. asset management and broker/dealer sectors were trading below analyst targets as of Aug. 30, with five trading 30% or more below analysts' mean one-year price targets and another 17 trading at least 20% below targets. Overall, stocks in the sector carried an 18.0% median upside to price target, according to S&P Global Market Intelligence data.
Asset manager Ashford Inc. easily carried the largest implied upside in the industry, at 206.3%. The company’s shares were down 72.6% for the year ended Aug. 30, and all analysts covering the stock had a buy recommendation.
In June, Ashford announced it would acquire Remington Holdings LP's hotel management business for $275 million. In 2018, Ashford acquired Remington's project management business for $203 million.
Another asset manager, Invesco Ltd., had the second-highest implied upside at 37.1%, while investment bank Cowen Inc. had the third-highest upside. Despite posting a one-year total return of 66.5%, asset manager Victory Capital Holdings Inc. had the fourth-highest upside, at 36.2%.
On the other hand, five securities and investment companies were already trading above their one-year mean price targets as of Aug. 30. MarketAxess Holdings Inc., an electronic-trading platform, topped the list, trading 19.7% above its target. None of the 14 analysts covering the stock rated it a "buy."
Hamilton Lane Inc. was the only other company in the analysis trading more than 10% above analysts' mean price targets.
In this analysis, S&P Global Market Intelligence examined 48 U.S. securities and investment companies trading on major exchanges in relation to their mean one-year analyst price targets as of Aug. 30. Only stocks with three or more analyst price targets less than a year old and trading above $5 per share were included.
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