Federated Hermes’ fair value estimate has experienced a modest uptick, with the price target rising slightly from $52.29 to $52.43 following the latest round of analyst updates. This change comes as market experts weigh the company’s robust quarterly earnings and ongoing industry momentum, while also considering cautious views about the stock’s current valuation. Stay tuned to see how investors can track and respond to future shifts in sentiment and price targets as this narrative continues to evolve.
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Recent analyst commentary on Federated Hermes reflects a mixture of optimism and ongoing caution. Several notable firms have updated their outlook following the company’s latest earnings and industry developments, weighing strong performance against considerations of current valuation.
🐂 Bullish Takeaways:
Evercore ISI raised its price target for Federated Hermes to $55 from $48 and maintained an Outperform rating. The firm highlighted sustained industry organic growth for a fourth consecutive month, as well as a positive close to the summer for both stocks and bonds. This signals sector momentum and improved asset flows.
JPMorgan increased its price target to $56 from $55 while keeping a Neutral rating. The firm’s analysts cited the company’s Q3 earnings beat as a key driver for the upward revision and noted that execution on earnings continues to impress.
Analysts overall pointed to robust quarterly execution and industry-wide positive trends as drivers behind recent price target increases.
🐻 Bearish Takeaways:
TD Cowen lifted its price target to $53 from $51 and maintained a Hold rating. The firm emphasized that, despite recent model updates, there is not enough residual value at current trading levels to prompt a more aggressive stance. TD Cowen points to valuation as a near-term risk, suggesting that much of the upside appears to be priced in.
Cautious sentiment persists among some analysts who, while recognizing operational momentum, remain hesitant due to concerns over the stock’s valuation and limited further upside.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NYSE:FHI Community Fair Values as at Nov 2025
Federated Hermes has launched the Enhanced Income ETF (CBOE: PAYR), aiming to provide steady monthly income to investors by blending high-dividend stock investments with options strategies. This new ETF is designed specifically for those seeking regular cash flow from their portfolios.
The Enhanced Income ETF is managed collaboratively by the Multi-Asset Investment Team and the Strategic Value Dividend Team. Their combined expertise focuses on disciplined risk management and generating reliable income for investors.
As of September 30, 2025, Federated Hermes oversees more than $1.2 billion in ETF assets, reflecting a growing suite of actively managed ETFs tailored to diverse investment goals.
The company has also introduced the MDT Market Neutral ETF, which focuses on long-term capital appreciation with strategies designed to limit exposure to overall market risk. This fund is managed by the Federated Hermes MDT Advisers team, which has an established history in market neutral investing.
Story Continues
Fair Value Estimate has risen slightly from $52.29 to $52.43, indicating a modest upward revision.
Discount Rate has decreased from 8.49% to 8.35%, reflecting a slightly lower perceived risk or cost of capital.
Revenue Growth Projection remains stable, with an incremental increase from 3.94% to 3.94%.
Net Profit Margin is virtually unchanged, edging down marginally from 20.80% to 20.80%.
Future Price/Earnings (P/E) Ratio forecast has fallen slightly from 10.33x to 10.32x.
A Narrative is more than just numbers; it is your chance to tell the story behind a company’s future. Narratives connect a company’s business fundamentals and financial forecasts to a fair value, letting you see not just what a company is worth, but the reasons why. On Simply Wall St’s Community, millions use Narratives to quickly spot if a stock is undervalued or overvalued, decide when to buy or sell, and stay up to date as new news or earnings revise the story in real time.
Explore the original Federated Hermes Narrative and keep up with:
How new product launches, like digital assets and income ETFs, are expected to broaden revenue streams and attract new clients for Federated Hermes.
Key analyst assumptions for future revenue and earnings growth and why most see the stock as fairly valued.
Risks around rising competition, fee pressures, and the potential impact of regulation on future margins and growth.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include FHI.
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