Man Group PLC (LSE:EMG) has been downgraded by UBS, which said the alternative asset manager's strong share price performance had left the stock fairly valued despite improving earnings prospects.
UBS cut its recommendation to 'neutral' from 'buy', but raised its price target to 320p from 290p after increasing its 2026 earnings forecast by 5%.
The Swiss bank said it remained positive on the FTSE 250 group's fundamentals and expected further upgrades to market earnings forecasts ahead of the group's first-half results.
However, it argued the recent rally meant much of that optimism was already reflected in the valuation.
At around 9.8 times forward earnings, Man Group now trades broadly in line with its eight-year average, compared with about seven times earnings in early 2025, UBS said.
Analysts also noted that consensus expectations for performance fees had risen sharply over the past year, with forecasts for 2026 and 2027 earnings from those fees increasing 85% and 30% respectively since August 2025.
They expect earnings per share to come in 15-25% above current consensus estimates in 2027 and 2028, supported by strong fund inflows and technology advantages.
Even so, the conclusion was that the balance of risk and reward had become more even after the shares' recent gains.
