Federated Hermes: Revised Expectations for Money Market Assets Lift Our Fair Value Estimate

We've increased our fair value estimate for Federated Hermes to $42 per share from $35 to account for revised near-term expectations for managed assets, revenue, and profitability since our last update. The company closed out September 2024 with $207 billion in long-term AUM, up 9.1% on a year-over-year basis. Money market fund assets, meanwhile, stood at $593 billion at the end of the third quarter, up 12.9% when compared with the prior year’s period.