Analyst Expectations For Federated Hermes's Future

During the last three months, 4 analysts shared their evaluations of Federated Hermes FHI, revealing diverse outlooks from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $39.5, with a high estimate of $41.00 and a low estimate of $38.00. Experiencing a 4.24% decline, the current average is now lower than the previous average price target of $41.25.

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive Federated Hermes. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |John Dunn |Evercore ISI Group |Lowers |Outperform | $38.00|$42.00 | |Kenneth Worthington |JP Morgan |Lowers |Underweight | $41.00|$42.00 | |Adam Beatty |UBS |Raises |Neutral | $40.00|$39.00 | |Kenneth Lee |RBC Capital |Lowers |Sector Perform | $39.00|$42.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Federated Hermes. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Federated Hermes compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Federated Hermes's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into Federated Hermes's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Federated Hermes analyst ratings.

All You Need to Know About Federated Hermes

Federated Hermes provides asset-management services for institutional and individual investors. The firm had $800 billion in managed assets at the end of September 2024, composed of equity (10%), multi-asset (less than 1%), fixed-income (12%), alternative (3%), and money market (74%) funds. The firm's cash-management operations are expected to generate around 51% of Federated's revenue this year, compared with 29%, 12%, and 7%, respectively, for the equity, fixed-income, and alternatives/multi-asset operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (65% of AUM), institutional investors (26%), and international clients (9%).

Federated Hermes: A Financial Overview

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Federated Hermes's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 8.48%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Federated Hermes's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 19.09%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Federated Hermes's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.44% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Federated Hermes's ROA stands out, surpassing industry averages. With an impressive ROA of 3.93%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.42, Federated Hermes adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.