GQG Shares Fall 13% After Analyst Downgrade Following Adani Group Indictment: On Monday, the Australian-listed asset firm GQG Partners shares fell by 13% as UBS analysts cut them due to its future dealings with Adani Group companies. UBS said it expected GQG could have lost about A$600 million ($390 million) in funds under management after the recent indictment of Adani Group founder Gautam Adani and seven others by US authorities on bribery charges. GQG Partners is an outstanding investor in the Adani Group, owning large chunks in most of the trades of the conglomerate.
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GQG Shares Fall 13% After Analyst Downgrade Following Adani Group Indictment: UBS recently lowered its rating of the company from “buy” to “neutral” in the aftermath of the criminal charges against Adani Group. The analysts for the shares lowered the price target of GQG from A$3.30 to A$2.30 as they were unsure of more potential losses to Adani Group from the ongoing court cases. This is specifically because Adani Group has dismissed the charges as mere fabrications and denounced them accordingly.
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The company has insisted it will use “all legal avenues available” to counter the allegations and defend its image. Rajiv Jain’s GQG Partners is under increasing pressure with significant exposure to Adani stocks, and analysts have raised concerns about the firm’s position given ongoing legal cases. However, to date, the company has not officially reacted to possible implications of the indictment on its financial situation, even with the downgrade to junk status. It is still unclear since the investors keep an eye on the developing trial and its significance for the companies targeted.
