The GQG Partners Inc (ASX: GQG) share price is charging higher on Wednesday.
In afternoon trade, the fund manager’s shares are 7% to a 52-week high of $2.13.
Why is the GQG share price racing higher?
Investors have been bidding the company’s shares higher today in response to the release of its latest funds under management (FUM) update.
According to the release, GQG’s FUM increased by an impressive 5.3% in January to US$127 billion.
This comprises International Equity FUM of US$49.2 billion (up 5.8%), Global Equity FUM of US$33 billion (up 5.75%), Emerging Markets Equity FUM of US$35.1 billion (up 4.5%), and US Equity FUM of US$9.7 billion (up 4.3%).
As a comparison, as we covered here on Tuesday, fellow fund manager Magellan Financial Group Ltd (ASX: MFG) released its FUM update for January and revealed just a 1.4% increase to A$36.3 billion. That is only modestly better than the performance of the ASX 200 index, which rose 1.2% for the month.
Should you invest?
Ord Minnett sees a lot of value in the GQG share price at the current level.
And while it hasn’t yet responded to this update, which means its recommendation could change in the coming days (for better or worse), it currently has a buy rating and $2.40 price target on it shares.
If Ord Minnett is on the money with this recommendation, it would mean upside of approximately 13% for investors over the next 12 months.
In addition, the broker has pencilled in a 16 cents per share dividend in FY 2024. This equates to a very generous 7.5% dividend yield at current prices, which boosts the total potential return beyond 20%.
The post Why the GQG share price is up 7% to a 52-week high and could keep rising appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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