Broker snap: Singer upgrades Schroders to buy

8th Aug 2011 11:21

Singer Capital Markets has upgraded its rating on global asset management firm Schroders from fair value to buy, saying that the recent sell-off has "presented an opportunity to invest in a strong business for those with long enough time horizons.""Although the short term outlook for asset managers is challenging to say the least, those with a focus on institutional clients are generally faring better in terms of fund flows. Schroders performance remains competitive," Singer said.However, while the group's interim results were in line, the broker said that in the face of current market declines, marking to market estimates results in a 3% and 7% reduction to 2011 and 2012 earnings per share forecasts, respectively.The target price is lowered from 1,900p to 1,780p.Shares were trading 1.12% down at 1,497p at 11.15am on Monday.BC