Broker snap: UBS cuts Ashmore to 'neutral'

18th Jan 2013 11:30

UBS has downgraded its recommendation for fund manager Ashmore from 'buy' to 'neutral' and reduced its target price for the stock from 390p to 375p, causing the stock to take a small hit on Friday morning."We downgrade Ashmore [...] on valuation grounds and because we believe that competitive pressures will persist," the broker said."In addition, with EMBI spreads clove to five-year lows, the risk/reward profile looks asymmetric to us."UBS said that while Ashmore still offers on the "cleanest structure growth stories" in the sector, supersize flows are less likely in the near term.Shares were down 2.63% at 354.9p by 11:39.BC