M&G has received a mild downgrade from analysts at RBC, which see few catalysts to move the fund manager’s share price higher in the coming months.
Expects earnings to be rebased lower, a flat dividend and a commitment to cutting debt, says the Canadian bank.
Operating profit forecasts have been reduced by 8%-10% for 204/25 while RBC said it was already 9% below consensus on average across the three years to 2026.
“We set DPS growth to 0% [for this year] due to MNG's focus on de-leveraging and the year-on-year reduction in Underlying Capital Generation (UCG).”
RBC’s price target drops to 216p from 220p while sector perform is the investment rating.