Man Group PLC

Man Group PLC (LSE: EMG) is an FTSE-250 index-listed Investment Management Company, that focuses on generating attractive performance and client portfolio solutions. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 191.40

• Resistance near Current levels: EMG’s stock price has almost breached Resistance (R2) which was stated in the previous report on 27 August 2025 therefore, there can be a possibility of a decline from resistance levels. Considering the market conditions and the price action, it is prudent to exit the stock.
• Decline in Core Earnings and Profitability Metrics - While Man Group reported record assets under management and decent net inflows, core earnings and profitability have experienced a notable decline. For the six months ending 30 June 2025, core profit before tax fell to $146 million from $257 million in the same period the prior year — a 43% decrease. Similarly, core EPS (diluted) dropped to 9.7¢ from 17.1¢, reflecting reduced earnings performance. This trend could prompt questions from investors about the firm's ability to maintain profit margins and earnings growth in a more volatile or challenging market environment.
• Underperformance Relative to Peers in Investment Performance - Despite positive absolute investment performance, Man Group underperformed its industry peers by 1.2%, according to its own key performance indicators. Given the firm's positioning as a sophisticated and diversified asset manager, consistent underperformance versus peers — even over short periods — may lead to concerns about the relative competitiveness of its investment strategies, particularly in light of market volatility and changing client expectations.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

 EMG Daily Technical Chart, Source - Refinitiv

Conclusion

EMG is expected to trade at a discount, considering Underperformance Relative to Peers in Investment Performance and fears of global slowdown. For conducting the valuation, the following peers have been considered - Schroders PLC (LSE: SDR), Aberdeen Group PLC (LSE: ABDN) and others.

Given its current trading levels, Decline in Core Earnings and Profitability Metrics, recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 191.40 as of 10 October 2025 at 11:30 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 10 October 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.