In the midst of earnings season, ASX 200 financials stock GQG Partners Inc (ASX: GQG) is getting plenty of positive attention.
It 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 released 2025 full year results last Friday.
This ASX financials stock reported:
- Funds under management (FUM) ended at USD 163.9 billion, up 7.1% from the previous year
- Average FUM rose 10.8% to USD 164.3 billion
- Net revenue increased 6.3% to USD 808.3 million
- Net income attributable to shareholders climbed 7.3% to USD 463.3 million
- Diluted earnings per share grew 6.7% to USD 0.16
- Full-year dividends declared were USD 0.1469 per share, a 7.5% lift
Investors gobbled up GQG Partners shares following this announcement, leading to a 7.7% rise in share price to end the week.
For context, the S&P/ASX 200 Index (ASX: XJO) fell 1.4% on Friday.
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Results prompt re-rating from Morgans
Earnings season often brings hefty share price swings like this one as investors react to results – either positively or negatively.
Following this initial shift, as the dust settles, brokers and analysts often release updated guidance, taking into account the most recent results.
That is exactly what has happened with this ASX 200 financials stock.
On Friday, following the release, the team at Morgans updated its view on GQG Partners shares.
Improved performance trends early in FY26
In a note out of the broker last week, it said GQG reported a FY25 NPAT of US$463m, up +7% on the pcp, and +1% vs consensus.
Overall, we would describe this as an in-line result, with the key positive being signs of improved investment performance in January and February (as markets have turned more in GQG's favour).
EPS outlook fell marginally, along with a 1 cent adjustment to its share price target.
However, the broker upgraded the rating to accumulate (previously hold).
The updated price target is $1.89.
This ASX financials stock closed trading Friday at $1.735 following the 7% gain.
From this share price, the updated target from Morgans indicates an upside of approximately 9%.
The broker also noted the dividend contributes to its attractiveness. Estimates project it could be as high as 13% in the coming years.
Clearly there needs to be more evidence that the recent 'flows risk' period has passed, but trading on 7x PE and an 11% dividend yield, we see the stock as too cheap versus its long-term prospects.
