Broker snap: RBS lowers Man Group rating, slashes target price

29th Sep 2011 10:44

RBS has lowered its rating and target price on Man Group after the hedge fund manager's poorly received trading statement yesterday.It now has a "hold" rating having previously had a "buy" stance and the target price falls to 205p from 282p."Substantial inflows in 1Q followed by substantial outflows in 2Q reveal how volatile the operating environment is for asset managers," RBS says."We remain strong believers in AHL (Man's flagship fund) as a proposition to customers and as a performance fee generator."RBS sees Man Group trading at around 12 times earnings on management fee profit.---RG