Federated Hermes Earnings: Reduced Outflows and Market Gains Lift AUM in Third Quarter

While there was little in no-moat-rated Federated Hermes' third-quarter results that would alter our long-term view of the firm, we expect to increase our $35 fair value estimate by 5%-10% to account for better levels of assets under management and flows than we were expecting at this point in the cycle (which will affect where managed assets are a decade from now). Even with the fair value estimate increase, we still see the shares as fairly valued.