Man Group (LSE:EMG) shares advanced on Thursday after Citigroup upgraded the investment manager to Buy from Neutral and increased its price target to 390 pence from 335 pence, citing improving investment performance and expectations of higher earnings.
The shares gained 0.9% to 329.86 pence, outperforming the broader UK mid-cap market, with FTSE 250 futures declining approximately 0.8%.
Citi said Man Group’s investment fundamentals had strengthened despite the company’s valuation multiple declining during the year. According to the broker, Man was the only traditional asset manager within its coverage to experience a valuation de-rating in 2026 while earnings estimates and underlying business indicators improved.
The bank identified increasing demand for liquid alternative investment strategies as a potential source of growth for Man Group, particularly as market volatility creates opportunities for investment managers operating across different asset classes.
Citi expects improved fund performance to support client inflows, management fee margins and profitability.
The broker forecast adjusted profit before tax of £899 million for the 2026 financial year, approximately 33% above market consensus estimates.
For 2027, Citi projected adjusted pre-tax profit of £742 million, representing an 8% premium to consensus expectations.
Revenue for 2026 is forecast to reach £2.16 billion, around 15% above consensus, with performance-related fees expected to contribute significantly to the company’s financial results.
Citi also projected continued growth in assets under management, forecasting €273.8 billion for 2026, approximately 3% ahead of consensus estimates.
For 2027, the bank expects assets under management to increase to €305.2 billion, exceeding current market forecasts by approximately 5%.
The broker anticipates that net client flows will remain stronger than consensus expectations, supported by investment performance and demand for alternative investment products.
Citi highlighted Man Group’s comparative investment performance, noting that 96% of its assets measured over a three-year period were invested in funds ranking within the top two performance quartiles as of September 2026.
According to the bank, this represented the strongest investment performance among the traditional asset managers included in its research coverage.
The upgrade reflects Citi’s assessment that Man Group’s earnings potential is not fully reflected in its current valuation, particularly given the expected contribution from performance fees and continued growth in assets under management.
Man Group is a London-listed global investment management company specialising in active investment strategies, including quantitative, discretionary and alternative investment approaches. The group manages assets for institutional and private investors across international markets.
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