Polar Capital Holdings PLC (AIM:POLR) were given an upgrade by Deutsche Bank as the specialist asset manager shows "early signs of recovery".
The rating was hiked from 'hold to 'buy' and the target price from 535p to 635p, compared to the last close price of 579p.
Analyst David McCann said Polar's recent annual results "showed that momentum appeared to be turning more positive in the business, although we note that the drivers of this remain fragile".
In the results, management articulated an ambition to get Polar to circa £30 billion of assets under management within three to five years, which the analyst think is "eminently achievable" given the mix of more mature funds and those with growth potential.
Liontrust and Quilter both 'sell'
McCann also updated his forecasts for sector peers Quilter PLC and Liontrust Asset Management (LSE:LIO).
Quilter was downgraded to 'sell' from 'hold' on valuation grounds, though fundamentals remain unchanged.
For Liontrust, the analyst said the share price is "not justified by the fundamentals", and reiterated a 'sell' recommendation with a target price of 600p compared to a last close of 683p.
The asset manager is estimated to have delivered £0.2 billion net outflows in June and £0.9 billion in the first quarter of its financial year, with estimated current assets under management 3% lower than reported as of March.