Regal Partners Ltd (ASX: RPL) is an ASX financials stock. The company provides investment management services.
Its share price fell more than 50% between February and April this year before slowly rebounding.
At the time of writing, shares are trading at around $3.40, which is roughly 11% lower than a year ago.
However, the team at Morgans has a buy recommendation and attractive price target on this ASX financials stock, indicating there may be brighter days ahead.
Let's see what was behind the rating.
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Resurgent market
Morgans said Regal Partners continues to take advantage of resurgent small cap and resource markets.
The company announced last month that during the September 2025 quarter, FUM for Regal Partners rose to $20.0 billion. This is a 13.1% increase on the $17.7 billion of FUM at 30 June 2025.
The broker noted the standout performance for the company was in Hedge Fund strategies, where investment performance delivered +$1.4bn (+17%) for the quarter.
This strong investment performance has also improved the 2HCY25 outlook for performance fees, which are expected to be materially above the top end of consensus.
Positive flows and investment performance across all strategies further underlies the diversity of RPL's offering, suggesting that performance fees will likely prove more persistent than current investor expectations suggest.
Combined with persistent investment performance we remain confident in RPL's capacity to continue growing FUM and it is on this basis we retain our BUY rating and $4.00/sh price target.
Expected upside from Morgans
Based on the broker's price target of $4.00 and yesterday's closing price of $3.40, Morgans sees an upside of approximately 17.7%.
Elsewhere, other brokers seem to also believe the current stock price is undervalued.
Online brokerage platform Selfwealth lists this ASX financials stock as undervalued by 42%.
TradingView has a 12 month price target of $5.08, which indicates almost 50% upside.
