Ninety One PLC (LSE:N91) shares surged 6% at the open before reversing to trade down 7% as investors focused on weaker-than-expected second-half net inflows, overshadowing a set of full-year results that beat consensus on profits and dividends.
Cavendish, which rates the stock a buy with a target price of 263p, said the only wrinkle in an otherwise solid performance was the smaller-than-anticipated net inflow during the second half, with the equities and multi-asset businesses appearing to be negatively impacted by macro uncertainties towards the end of the period.
The global active asset manager reported adjusted operating profit of £211.3m for the financial year ended March 2026, up 12.5% year on year and 1.5% ahead of consensus, driven by operating revenues that were 1.8% ahead of expectations.
Net management fees rose 8.9% to £617.3m, supported by a 17.7% increase in average assets under management to £171.8bn, though fee margin slipped 3.3 basis points to 40.7 basis points.
The full-year dividend of 13.4p was declared, up 9.8% and 3.1% ahead of expectations, representing a payout ratio of 76.6%.
Net cash at the period end stood at £434.4m, up 12.4% year on year, and the board expanded its share buyback programme from £30m to £55m, to be completed by 21 July 2026.
Cavendish left its adjusted earnings per share estimate of 18.1p and target price of 263p unchanged, citing attractive valuation and a dividend yield of 5.9%.
At 9.30am, the shares were changing hands for 206p.
