Magellan Financial Group Ltd (ASX: MFG) shares are in focus today after the company released important information in an ASX release yesterday.
The company is an Australian-based funds manager investing in global equities and global listed infrastructure.
The Funds Management segment provides investment research, administrative services, investment management, and sub-advisory services.
As The Motley Fool’s Laura Stewart reported yesterday, the company reported that total assets under management (AUM) dropped to $37.5 billion as at 31 March 2026, down from $39.9 billion at the end of 2025.
In a release yesterday, the company announced that both retail AUM declined from $15.8 billion to $14.1 billion and institutional AUM slipped to $23.4 billion, down from $24.1 billion.Â
It seems investors are disappointed with this news as the stock price has opened 4% lower this morning.
Despite this drop, the share price remains up 33% over the last year.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 22% in that same span.
Following yesterday’s announcement, the team at Morgans provided updated guidance on Magellan Financial Group shares.
Buy maintained despite announcement
Morgans has retained its buy recommendation on Magellan Financial Group shares despite the AUM drop.
MFG has given an end-to-March 2026 quarterly FUM update. FUM (A$37.5bn) was down 6% for the quarter due to a combination of outflows across most funds and market movements.
Overall this was a softer quarter at the headline level, albeit some impacts from market volatility are unsurprising.
As a result, it has downgraded its earnings per share forecast by 1%-8% over FY26/FY27.
Price target reduction for Magellan Financial Group
As a result of this downgrade, Morgans has reduced its price target to $11.99 (from $12.43).
Whilst MFG’s Investment Management performance remains patchy, we think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways for growth. MFG also retains a strong balance sheet (~A$650m of liquidity, post deal).
From today’s current stock price of approximately $9.60, this updated price target indicates a potential upside of 25%.
The post What is this broker’s view on Magellan Financial Group after yesterday’s disappointing results appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Bell 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.