BUZZ - Australia's Magellan Financial shares hit a one-and-a-half-year low; Morningstar lowers its fair value estimate due to weak outlook

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October 23 - ** Magellan Financial Group (MFG.AX) shares once fell 5.7% to A$7.26, hitting their lowest level since April 23, 2025

** Morningstar lowered its fair value estimate of the fund management company from A$8.50 to A$8, after the company's trading update showed weak financial market income and a decline in assets under management

** Medium-term revenue forecasts have been lowered in view of continued fund outflows and a weak outlook for the fund management business

** It was stated that shareholders have approved the company's name change to Barrenjoey Group to reflect its increasing focus on investment banking

** It is expected that by fiscal year 2031, the investment banking business will contribute over 80% of revenue, up from around 70% in fiscal year 2026

** Out of six analysts, one has a “buy” rating, three have a “hold” rating, and two have a “sell” rating; the median target price is A$8.05—Reuters compiled data

** Shares have fallen 26.5% so far this year

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