Broker snap: UBS gives Ashmore a lift

5th Apr 2012 11:16

Emerging markets (EM) focused fund manager Ashmore was leading the risers on the FTSE 100 on Thursday after UBS upgraded its rating on the stock from neutral to buy.UBS said that Ashmore has de-rated by 5% versus its peers on a one-month and three-month period. This recent underperformance, combined with the strong fund performance and record inflows at industry level, has prompted the broker to raise its recommendation, it said."We see significant structural opportunities for growth in EM assets: i) as parts of EM become investment grade, this widens the range of addressable investors; ii) the hunt for yield remains strong for liability driven investors; iii) EM corporate debt has the potential to become as big as sovereign debt; iv) EM currencies appreciation.On April 12th, the company will release its third quarter statement, in which UBS expects to see assets under management (AuM) rise 11% from the second quarter to $67.2bn.The broker has raised its target price from 400p to 420p.BC