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Magellan (MFG) does MM have a new target price?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Question asked

Magellan (MFG) does MM have a new target price?

Hi Guy’s, I missed selling MFG when MM sold in Dec 24 around $11.95. In the last few days it has jumped from $12. Do you have a new target price? Cheers, Mic Hi James, i realise MGF has reached your trading range target. However for those playing along at home, do you see MGF inching upwards, downwards or sideways in 2025. cheers, Jamie Hi MM Team, I missed the opportunity to sell MFG on December 6th and decided to hold on. It is now approaching the $12 target again and has gained around 10% in the past 5 days, showing good momentum. Additionally, there is an upcoming dividend in February. With this in mind, is the $12 price target still valid? Best regards, Mitch

Answer

Hi All,

Rarely do we receive so many questions about one company for Saturday report without a major move in the stock. On Wednesday afternoon the ASX200 was up +3.3% year-to-date compared to MFG which has  advanced over 7%, trading at levels not see since 2022. Earlier in January MFG reported total funds under management (FUM) of $38.6bn, after experiencing net outflows of $400mn in December, a reasonable result + the company is entitled to an estimated performance fee of $6mn in the half-year compared to just $100k in the same period of 2023, implying performance is improving accross their strategies.

  • Overall, we continue to believe MFG has turned the corner but that’s old news, the stock has already doubled from its late 2023 low.

In line with our “grind higher” view for stocks through 2025, we still like MFG and current momentum implies a test of $13 wouldn’t surprise, but the value that has seen us own the stock on a few occasions in recent years is no longer as obvious.

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Magellan Financial Group (MFG)
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