Cantor outlines how to navigate the emerging Bitcoin treasury sector
On Tuesday, RBC Capital Markets adjusted its outlook on M&G PLC (MNG:LN), a London-listed savings and investment management company. The firm’s analyst, Mandeep Jagpal, revised the price target downward to £2.25 from the previous £2.30 while maintaining a Sector Perform rating on the stock.
The adjustment comes as a response to the recent market volatility, which has highlighted the importance of M&G’s strategy to diversify its growth avenues. The analyst noted that M&G’s renewed focus on and simplification of its Life business is expected to bolster earnings resilience and support the company’s new progressive dividend policy.
Despite recognizing the strategic measures M&G is implementing, RBC Capital expressed caution due to the uncertain short-term outlook for Asset Management net flows. This uncertainty is a significant factor in the decision to retain the Sector Perform rating.
The revised forecasts take into account the financial year 2024 results, company guidance, and market-to-market effects. These changes are projected to result in a decrease of approximately 3% per annum in Adjusted Operating Profit across the financial years 2025 to 2027, leading to the reduction in the price target to 225p from 230p.
M&G PLC has not issued any public statement in response to the revised price target at the time of reporting. The company’s stock performance in the upcoming period will likely reflect investor sentiment in light of RBC Capital’s updated analysis and the broader market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.