According to Morningstar, Magellan Financial’s FY23 profit in its fundamental funds management division surpassed analysts' predictions by 3%.

This resulted in a 1% increase in Magellan’s share, which is now valued at A$10.52.

The surprisingly high profit is attributed to unexpectedly substantial revenue and cost in FY23.

The brokerage stated that their fair value estimate for the Australian fund manager will rise to A$11.50 per share, providing the company continues to retain its cost-to-income ratio at CV23 levels.

However, Morningstar predicts that Magellan will continue to have net outflows during our estimation period.

As of the most recent closure, the stock has seen an increase of 16.6% this year.

Magellan Financial is a prominent fund manager based in Australia.