Man Group (LSE:EMG) Expands Meiji Yasuda Partnership, Is The 12% Undervaluation Still There?

Man Group (LSE:EMG) has expanded its partnership with Meiji Yasuda Life Insurance, with the Japanese insurer planning JPY 200 billion of capital commitments focused on private credit over the next three years.

That expanded Meiji Yasuda commitment comes at a time when Man Group’s share price has been strong, with a 90-day share price return of 11.32% contributing to a 45.63% year-to-date gain and a one-year total shareholder return of 65.37%. This suggests that investors have been rewarding the story, although momentum has recently cooled compared with that longer-term performance.

Scan for other asset managers building momentum in institutional mandates with our hand-picked 5 high quality undiscovered gems, which echo themes similar to Man Group’s latest Meiji Yasuda deal.

Man Group now has a sizable private credit commitment from Meiji Yasuda and a strong recent return profile. The harder question is whether that momentum is already embedded in today’s valuation.

Most Popular Narrative: 12% Undervalued

Man Group last closed at £3.36, while the most followed narrative points to a fair value of about £3.83, so the story centers on whether the current price fully reflects the earnings potential implied by that gap. The analysis uses a discount rate of 8.4% and a detailed earnings path to frame that difference.

The current valuation implies the share price does not fully reflect record AUM, strong net inflows ahead of industry growth, higher core management fee EPS and rising performance-fee-eligible AUM. This narrative therefore holds that Man Group is undervalued and the stock is priced for a more muted earnings profile than the recent numbers suggest.

See why 79 investors see Man Group as 12% undervalued.

Result: Fair Value of £3.83 (UNDERVALUED)

Still, the story of Man Group can change quickly if the PIFSS litigation outcome is costly or if net inflows and performance fees fall short of expectations.

Find out about the key risks to this Man Group narrative.

Next Steps

Plenty of optimism runs through this Man Group story, yet the data also flags meaningful risks that deserve equal attention. You can move quickly and weigh both sides for yourself by checking the 3 key rewards and 1 important warning sign.

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