ASX 200 financials stocks have enjoyed a strong year so far in 2025.
The S&P/ASX 200 Financials (ASX:XFJ) index is up more than 13.5% year to date.
Meanwhile, ASX 200 financials stock GQG Partners Inc (ASX: GQG) has fallen significantly.
However broker Ord Minnett has released a new report, indicating the struggling stock could be a buy low candidate based on its current valuation.
Let's see what the broker had to say.
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A down year so far
This ASX financials stock is a global boutique asset management company focused on active equity portfolios. It offers investment advisory and portfolio management services for investors across three continents.
The company's clients include pension funds, sovereign funds, wealth management companies, and individual investors.
Its share price is down more than 22% so far this year and more than 41% in the last 12 months.
However, the team at Ord Minnett believes it can bounce back.
Buy based on valuation
It seems the broker is more focussed on its low valuation rather than the financials.
Ord Minnett said GQG Partners reported fund net outflows in September of US$1.7 billion ($2.6 billion), pushing total funds under management (FUM) down 1% to US$167.2 billion.
It said emerging markets and US funds were the hardest hit, both recording outflows of US$600 million, while global and international strategies suffered smaller outflows of US$200 million and US$300 million, respectively.
GQG Partners' defensive tilt in its strategies meant its funds continued to underperform on relative basis – in September this underperformance amounted to 4.0 percentage points (ppt).
We note that QGQ has recorded positive absolute returns in October so far but is underperforming by 0.7–1.4ppt in relative terms across its various strategies.
Attractive price target from Ord Minnett
The broker said it maintains its target price of $2.80 on this ASX 200 financials stock and keeps its buy recommendation on valuation.
Based on yesterday's closing price of $1.60, this indicates an upside of 75%.
Other targets from brokers reinforce it may be undervalued at its current price.
The team at Macquarie placed a price target of $2.50 on this ASX financials stock earlier in the month.
TradingView has a one year price target of $2.50. Online brokerage platform Selfwealth lists it as undervalued by approximately 57%.
