LONDON (ShareCast) - UBS said it is 'waiting for more visibility' on key stock drivers at Man Group (LSE: EMG.L - news) as it downgraded the asset manager from 'buy' to 'neutral' on Friday morning.
"Management delivered a strong presentation [on Thursday] highlighting the company's strong competitive advantages such as an embedded distribution platform, funds with strong performance and a realigned cost base.
"We believe that Man Group has high exposure to a return in risk appetite, but this option needs to become more tangible, as the share price is starting to trade off run-rate numbers," UBS (Berlin: UBRA.BE - news) said.
The broker said it is waiting on number of potential catalysts that could deliver further upside but these are quarters out.
These include: a deal with strong downside protection; a reduction in regulatory capital given balance-sheet dynamics; an improvement in investor sentiment; and an improving performance of the AHL fund.
UBS has cut its operating profit forecasts by 2.0% this year after reducing assets under management by 2.0% due to a weak dollar and reduce flow estimates.
However, the 105p target price for the stock is unchanged.
Shares were down 4.57% at 95.71p by 10:18 on Friday.