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Highlights

  • Analysts at Goldman Sachs highlight GQG's potential for 50% upside
  • Recent fund inflows helped drive the company's FUM to US$161.9bn
  • Goldman Sachs retains its buy rating despite market challenges

Goldman Sachs analysts have shared their thoughts on GQG Partners Inc (ASX: GQG), suggesting that it may offer a significant upside for investors, with a 50% potential return based on the current share price. Despite some recent market challenges and downgrades, the investment company’s continued success in attracting fund inflows has maintained its appeal.

According to the latest funds under management (FUM) update, GQG Partners saw an increase in its FUM to US$161.9 billion by March 2025, up from US$160.5 billion in February. This was driven by higher-than-expected net inflows and market performance during the first quarter of 2025. Goldman Sachs highlighted the following growth in GQG’s key investment strategies:

  • International equity: FUM increased by 2.9% to US$63.7 billion in March 2025, showing an 11.4% rise compared to December 2024.
  • Global equity: FUM decreased by 3.8% to US$40 billion in March, but still showed a 3.1% increase from December.
  • Emerging markets equity: FUM grew by 4% to US$39.1 billion in March, although it was down 3% from December.
  • US equity: FUM dropped 1.5% to US$19.1 billion in March, though it was up by 14.4% compared to December.

While Goldman Sachs notes that the market has been weaker since the quarter's end, which led to some negative adjustments, the firm's overall long-term performance across its investment strategies has outperformed benchmarks. Despite these market dynamics, Goldman Sachs retains a "buy" rating on the stock with a slightly reduced price target of AU$3.00, suggesting potential upside of 50% from the current GQG share price of AU$2.00.