Update shared on06 Sep 2025
Fair value Increased 2.03%Federated Hermes’ price target was raised to $50.29 as analysts cite sustained strong equity net flows, positive market conditions, and improved organic growth outlook in the asset management industry.
Analyst Commentary
- Improved organic growth in the asset management industry, with Federated Hermes experiencing strong equity net flows for a fourth consecutive month.
- Positive market conditions, as both stocks and bonds performed broadly well over the summer period, supporting traditional asset manager groups.
- Upward revisions to equity organic growth estimates following better-than-expected equity net flows in recent quarters.
- Anticipation of continued improved industry organic growth trends, boosting confidence in forward earnings and assets under management.
- Outlook for additional near-term positive catalysts tied to upcoming AUM and monthly flow results.
What's in the News
- Federated Hermes announced a new share repurchase program, authorizing buyback of up to 5,000,000 shares with no expiration date for treasury, compensation, acquisitions, and other activities.
- Between April 1 and June 30, 2025, the company repurchased 1,523,100 shares (2.02%) for $63.56 million; total repurchases under the October 2024 buyback now stand at 3,855,685 shares (5%) for $155.96 million.
- The Board of Directors authorized a new buyback plan.
Valuation Changes
Summary of Valuation Changes for Federated Hermes
- The Consensus Analyst Price Target has risen slightly from $49.29 to $50.29.
- The Future P/E for Federated Hermes has risen slightly from 10.38x to 10.60x.
- The Discount Rate for Federated Hermes remained effectively unchanged, moving only marginally from 8.28% to 8.30%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.