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.

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.

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