FHI - Federated Hermes: Watch Out For Positive Surprises
2024-01-24 04:29:39 ET
Summary
- Federated Hermes' end-Q4 2023 money market AUM surpassed expectations, growing by +7% QoQ and +29% YoY in the recent quarter.
- The company's new Total Return Bond ETF launch is an indication that it has untapped growth potential in the area of ETFs.
- The market may have underestimated FHI's growth outlook, and the stock has the potential to trade higher and closer to its 10-year mean P/E multiple.
Elevator Pitch
I continue to assign a Buy rating to Federated Hermes, Inc. ( FHI ) stock.
My earlier article for FHI written on September 8, 2023 touched on the company's stock price underperformance and the potential re-rating catalysts for its shares. I write about Federated Hermes' most recent money market AUM (Assets Under Management) disclosure and the company's new ETF offering in this latest write-up....
Federated Hermes: Watch Out For Positive Surprises