
Federated Hermes (FHI) Stock Forecast & Price Target
Federated Hermes (FHI) Analyst Ratings
Bulls say
Federated Hermes is expected to see a strong positive trend in its managed asset growth, with expectations for the money market fund (MMF) assets under management (AUM) to escalate by 12.2% year-on-year. The shift in institutional MMF assets back to institutional prime from government MMFs could benefit FHI due to their competitive advantage in credit analysis and security selection for prime MMFs. Further, the introduction of new fund products from Hermes Investment Management and the massive positive net inflows of $925 million in Fixed-income are other key indicators that reflect a promising future for Federated Hermes.
Bears say
Federated Hermes is experiencing several challenges that generate a negative outlook. Firstly, the reported bottom line EPS exceeded expectations, but fee revenues were lower than anticipated, coupled with a significant estimated decline in domestic and international equity organic flows. Secondly, the company is operating under lower margins in an industry that is increasingly moving towards passively managed products, which threatens the firm's actively managed product AUM over time. Lastly, short-term interest rate risks could further adversely impact yields generated by securities within the firm's money market funds (MMFs).
This aggregate rating is based on analysts' research of Federated Hermes and is not a guaranteed prediction by Public.com or investment advice.
Federated Hermes (FHI) Analyst Forecast & Price Prediction
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