Man Group PLC (LSE:EMG) (EMG) has been downgraded to 'Neutral' from 'Buy' by analysts at UBS after they lowered their price target by 20% to 220p and cut their 2023 EPS estimates for the active investment manager by 11%.
In a note to clients, the UBS analysts said: "We expect the de-risking of pension funds to have a negative impact on EMG's fund flows over the coming 9-12 months which is not factored into consensus 2023 EPS (we are 11% below 2023 consensus EPS).
"We think the market underestimates the magnitude and duration of the upcoming pension fund de-risking process on EMG's liquid total and absolute return products."
The analysts concluded: "While we still view EMG's long-term prospects favourably, especially given the strong performance in EMG's key strategies, we think any upside to its share price will be limited in the coming quarters."
In morning trade on Friday, Man Group shares were down 1.6% at 214.70p