Broker snap: Man downgraded as forecasts cut

8th Jan 2010 09:03

Morgan Stanley has cut Man Group to 'equalweight' from 'overweight' and dropped its price target to £3.40 from £4. The broker, which also removed Man from its best ideas portfolio, said the downgrade reflects an 18% cut in its FY11e EPS on lower performance fees and reduced sales. It likes Man's exposure to a number of growth areas - distribution in Asia, capabilities in onshore to complement offshore structured products and benefit from UCITS III Opportunities - but pressures on sales and earnings are not fully reflected in market numbers.