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Investing.com - BNP Paribas (OTC:BNPQY) Exane downgraded M&G PLC (LON:MNG) from Neutral to Underperform on Thursday, setting a price target of GBP2.20.
The downgrade comes despite the firm’s favorable view of M&G’s strategy and competitive advantages, with BNP Paribas Exane noting that recent outperformance following the announced Dai-Ichi partnership "significantly exceeds the fair value impact of the deal."
BNP Paribas Exane expressed concern that some investors may be disappointed regarding excess capital returns, leading to the rating reduction despite the firm "favouring the strategy and admiring M&G’s competitive advantages."
The research firm maintained a positive outlook on several aspects of M&G’s business, including its emphasis on capital-light growth and internationalization efforts that are "starting to bear fruit."
BNP Paribas Exane also highlighted M&G’s Private Assets capability and With Profits fund as "distinctive sources of advantage," while noting its 2027 projections are "slightly ahead of consensus."
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