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(Sharecast News) - Jefferies upgraded Ashmore to 'buy' from 'hold' on Tuesday and hiked the price target to 285p from 170p as it cited an attractive risk/reward and said that Q4 2025 marked a turning point in the emerging markets cycle.
It noted that Ashmore delivered a $2.6bn increase of net new money, with about 50% of gross inflows coming from new mandates as institutions rebuild their strategic EM exposure.
"The EM flow cycle typically accelerates once it turns," Jefferies said. "Despite the recent rally, Ashmore shares trade below 2016 levels when, from a similar AUM base, it subsequently added circa $20bn of NNM, and its stock doubled."
The broker said the current valuation still embeds only a modest recovery relative to that period, despite a stronger revenue mix, substantial surplus capital and the scarcity value of a scaled EM specialist.
"If momentum persists and flows begin to broaden beyond institutionled mandates, we think there remains meaningful potential for further rerating," it said.
At 0915 GMT, the shares were 4.2% higher at 248.80p.
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