JPMorgan upgrades AssetMark Financial on medium term position

JPMorgan analyst Michael Cho upgraded AssetMark Financial to Overweight from Neutral with a price target of $32, up from $24. The analyst thinks the independent advisor space will continue to benefit from industry secular tailwinds. The service providers that cater to independent financial advisors continue to gain traction, the firm tells investors in a research note. Despite the uncertain near-term market and macro backdrop, companies like AssetMark remain well positioned over the medium term, JPMorgan contends. The analyst says the wealth industry is benefitting from a rise in demand for financial advice while the wirehouses continue to cede share. The firm upgraded small-cap idea AssetMark on expectations for continued solid execution, self-help margin expansion, its higher sensitivity to markets, and an "unassuming" valuation.