Although it has recovered somewhat from a recent selloff, the GQG Partners Inc (ASX: GQG) share price remains down 29% from its high.

This could be a buying opportunity for investors according to analysts at Goldman Sachs. Especially for those that are looking for a source of income.

What is the broker saying about this ASX stock?

Goldman Sachs notes that the fund manager has released its first funds under management (FUM) update since news of the Adani Group rocked the Indian share market.

According to the note, the broker was pleased to see that there was only a bit of a slowdown in net flows during the month despite concerns over the ASX stock's investments in the conglomerate. It said:

Key takeaways: 1) Nov-24 net flows were $0.1bn v YTD net flows of $20.4bn- suggesting somewhat of a slow down in net flows. FUM was broadly stable at $159.5bn for Nov-24 v Oct-24. While GQG flags gross inflows remaining strong through and immediately following the Adani incident, this implies that the slow down in net flows relates to perhaps more elevated outflows around that time period. We think most of the slow down appears to be driven by Emerging Market Equity and International Equity funds.

2) GQG flags $1.1bn of gross inflows over the first week of Dec-24: With FUM of $161.5bn as at 6th Dec-24 3) GQG canceled its share buyback program however we note Rajiv Jain (Chairman and CIO) indicated he intends to further purchase shares: Buyback was terminated due to uncertainties relating to US tax withholding requirements.

In light of the above, the broker believes the selloff has been unnecessary and created a compelling buying opportunity for investors. It adds:

We retain our Buy rating on GQG: We lower our PT to $2.80 from A$3.00 to reflect the relatively muted impact on flows to date despite an outsized share price reaction resulting in a year P/E of <9x. We've moderated our flows reflecting some slowdown, albeit manageable in our view.

Big potential returns

As you can see above, Goldman has retained its buy rating with a lowered price target of $2.80.

Based on its current share price of $2.21, this implies potential upside of 27% for investors over the next 12 months.

In addition, the broker is forecasting a 15 US cents (23.3 Australian cents) per share unfranked dividend in FY 2025. This represents a whopping 10.5% dividend yield at current prices, which brings the total potential return on offer with this ASX stock to a touch under 40%.