HSBC has upgraded its rating on wealth manager M&G PLC (LSE:MNG) to 'buy' from 'hold', sending it shooting to the top of the FTSE 100.
“We see M&G offering very attractive total capital return yields at an average of 20% pa over 2022-24, which correspond to the group returning c60% of its market cap to shareholders over three years.”
HSBC’s new price target is 260p from 220p.
St James Place also gets an upgrade to 'buy' on the prospect of strong inflows, revenues and a host of other metrics over the next few years - gross inflows (10% CAGR), AUMA (10%), cash EPS (19%), IFRS EPS (15%) and DPS (10%) - which is not being reflected in its current share price.
However, its new target price is 1,600p, trimmed slightly from 1,650p previously.
abrdn was a buy already but now has a target price of 255p down from 330p, due to a reduction in the long-term growth rate assumption in its valuation methodologies to 2% from 3%.
Shares in M&G rose 3.6% to 221.9p.