Investment manager Polar Capital Holdings PLC's (AIM:POLR) exposure to the currently volatile technology sector has resulted in a share price downgrade from Deutsche Bank.
In a Tuesday broker note, analysts at the bank estimated that Polar Capital delivered £100 million in net inflows in July and has remained inflow positive in early August.
But current assets under management (AuM) are estimated to have declined approximately 9% since the June reporting figure, “principally driven by Polar's high weighting towards technology assets and the associated sell off, as well as recent negative market movements more generally”.
Tech stocks have taken a battering amid a mixed earnings season and heightened fears of a US recession.
The Nasdaq 100 Index, a benchmark for US large-cap tech stocks, plummeted by 3% on Monday alone, bringing month-on-month losses into the double-digit range.
Markets are expected to partially recover when trading commences on Tuesday, but Deutsche still expects Polar Capital’s earnings to take a hit.
As a result, Deutsche’ Polar Capital share price target has been slashed to 510p from 635p, with the rating downgraded to 'hold' from 'buy'.
Shares were swapping for 524.5p at the time of writing.