Schroders PLC (LSE:SDR) was one of the top blue-chip risers in Europe on Thursday after being upgraded by Morgan Stanley.
The US investment bank moved to an 'overweight' rating from 'equal-weight' as part of a review of the European asset management sector, also hiking its share price target to 500p from 415p.
Analysts said Schroders shares had underperformed the sector so far this year and its valuation was now more than 20% below their long-term price-earnings average.
This opens a buying window for the FTSE 100 group, which the analysts believe is better positioned for growth in private markets than rivals thanks to a broader product offering and broader footprint in Asia, plus a wealth division that "provides stickier assets and more stable growth versus asset management".
Schroders has also shown the biggest improvement in fund flow momentum, driven by fixed income, with "building potential to benefit from broader risk re-engagement as macro conditions continue to build and rate levels come down".