Man Group PLC (LON:EMG) is the exception to a generally bullish view of fund management firms by Jefferies, with the hedge fund manager getting a downgrade on the back of higher performance fees.
Overall, the sector has seen better inflows than it expected in the first half of 2017 says the US broker, with Jupiter PLC (LON:JUP), Ashmore PLC (LON:ASHM), Aberdeen Asset (LON:ADN) and Hargreaves Lansdown PLC (LON:HL.) all seeing net flows running ahead of its expectations.
As a result, price targets have edged up, especially as the the final FCA report was a reiteration of previous work and provided little in the way of incrementally bad news.
The announcement of a platform market study will, however, create an overhang for Hargreaves Lansdown.
Top buy recommendation is Intermediate Capital PLC (LON:ICP) with a price target of 1,023p, while Jupiter Fund (LON;JUP) is also a buy.
Man Group drops to hold (from buy) allowing for the need to strip out some performance fees, which sees the price target reduced to 164p.