Broker snap: Glass half-full for Man Group

21st Apr 2011 12:15

RBS raises the target price for Man Group and moves to a "glass half-full" stance, saying that the hedge fund manager is now trading on more realistic earnings and valuation metrics following recent declines."Man Group has disappointed the market on fund flows over the past two quarters and thus our bear case should now be largely factored into the share price. We see gradual fund flow improvement for the group over the next 12 months," the broker said.Additionally, RBS notes that 2012 consensus performance fees have been cut by around 30%, which now looks "more realistic".The recent share price pullback - which has seen the stock tumble over 20% over the last two months - "sees us moving to a more positive disposition on Man Group," the broker said.While a 'hold' is maintained, the target price it increased to 270p, from 244p previously.---bc