Federated Hermes price target raised to $36 from $34 at RBC Capital

RBC Capital analyst Kenneth Lee raised the firm’s price target on Federated Hermes to $36 from $34 but keeps a Sector Perform rating on the shares ahead of its Q4 results. Data from industry retail fund flows including index funds, but excluding ETFs, suggest equity net flows continued to be weak in Q4, with an estimated organic decline of 5.6% in domestic equity and a 5.7% estimated organic decline in international equity, the analyst tells investors in a research note. RBC adds that at current valuation levels, it sees less potential for further material upside for the stock relative to its peers.