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The Expert View: Ashmore, Workspace, Restaurant Group
by Chris Marshall on Sep 23, 2013 at 05:01
Buy Ashmore on emerging market dips
Emerging markets will remain liable to ‘considerate volatility’, but long-term investors should buy shares in asset manager Ashmore (ASHM.L) in the dips, says Berenberg analyst Pras Jeyanandhan.
Emerging market assets have suffered amid expectations of the start of the end of US quantitative easing, and could continue to do so. But this is not a full-blown crisis and ‘there will be buying opportunities for a stock with attractive long-term growth opportunities underpinned by a stable, institution-heavy client base, solid balance sheet and large cash pile,’ said Jeyanandhan about emerging market-focused Ashmore.
‘Ashmore is afforded the luxury of being able to take a long-term investment view as its clients are mainly institutions, governments, sovereign wealth funds and central banks (71% of assets under management) that are investing in emerging market debt on the back of strategic allocation decisions,’ he added.
‘These clients are typically less prone to panicking when emerging-market sentiment is weak’.
Berenberg has a price target of 470p and a ‘buy’ rating on Ashmore.
The company's shares dropped 0.8% on Friday to 397p.
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