RBC Capital Raises Federated Hermes (FHI) Price Target Amid Strong Equity Flows

Federated Hermes, Inc. (NYSE:FHI) is one of the best mid-cap value stocks to buy right now. On August 15, RBC Capital analyst Kenneth Lee increased the price target for Federated Hermes from $45 to $51, maintaining a Sector Perform rating. The revision follows the company’s Q2 2025 results, which showed stronger-than-expected equity net flows.

RBC Capital Raises Federated Hermes (FHI) Price Target Amid Strong Equity Flows

The company’s earnings per share in the quarter came in at $1.16 per share, compared to $0.20 per share, as net income more than quadrupled to $91 million from $21 million in the second quarter of 2024. Revenue in the quarter increased by 6% to $424.8 million as total managed assets increased by $63 billion to $845.7 billion.

RBC sees an improving outlook for Federated Hermes’ organic equity growth, prompting a more optimistic valuation. The firm believes continued momentum in equity inflows could support long-term performance and justify the upgraded target.

Federated Hermes, Inc. (NYSE:FHI) is a global asset management firm that provides a wide range of investment solutions, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies, to institutional investors and intermediaries.

While we acknowledge the potential of FHI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FHI and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Must-Buy Small-Cap Stocks to Invest In and 11 Best Alternative Energy Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.