JPMorgan Downgrades Federated Hermes Inc. (FHI) to Neutral

JPMorgan analyst Kenneth Worthington downgraded Federated Hermes Inc. (NYSE: FHI) from Overweight to Neutral with a price target of $42.00 (from $49.00).

The analyst comments: "Federated Hermes is a mid-sized asset manager with large concentration in money market funds. We are downgrading Federated from Overweight to Neutral. Our thesis has been that Federated would benefit in a falling interest rate environment. Our primary thesis was that in a high but falling rate environment, money market funds would take share from the direct (short term) bond and rates markets and money fund asset growth would accelerate. The thesis appears correct in that institutional money fund flows industry-wide have picked up increasing growth to an annualized 30%, driven largely by institutional money funds. However, Federated has lost share, growing fund assets in 4Q by 21%. With the rate outlook more benign, there is likely less opportunity to win share from the direct market. With weaker returns in 4Q24 and lost share in money funds, we lower estimates and our price target to $42, in line with the current stock price."

For an analyst ratings summary and ratings history on Federated Hermes Inc. click here. For more ratings news on Federated Hermes Inc. click here.

Shares of Federated Hermes Inc. closed at $40.59 yesterday.

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Sansera Engineering Ltd (SANSERA:IN) PT Raised to INR4,250 at ICICI Securities
• LG Electronics India (LGEL:IN) PT Raised to INR1,815 at ICICI Securities