GQG Partners Inc (ASX: GQG) shares could be seriously undervalued right now.

That's the view of analysts at Ord Minnett, which believe this ASX stock could deliver very big returns over the next 12 months.

What is the broker saying about this ASX stock?

GQG Partners is a boutique asset management company that was founded in 2016 and is headquartered in Florida. It is led by Rajiv Jain, who is GQG Partners founder, chairman, and chief investment officer. ‍

The ASX stock is down 32% from its 52-week high and at a level that Ord Minnett sees as very attractive. Particularly given its strong investment performance. It said:

GQG's latest update showed softer investment performance in December 2024, although performance over all other time periods remains very strong. Net flows were in line with Ord Minnett's expectations and similar to the prior month. The business remains in good shape and recent volatility in the share price, driven by the Adani-related corruption charges in the US, far exceeds the recent moderation in business performance, in our view. GQG's valuation remains compelling, leading us to reiterate our Buy recommendation.

Ord Minnett has a buy rating and $2.80 price target on its shares. Based on its current share price of $2.10, this implies potential upside of 33% for this ASX stock over the next 12 months.

In addition, the broker is forecasting dividends per share of approximately 20.7 cents in FY 2024 and then 21 cents in FY 2025. If this proves accurate, it will mean huge dividend yields of 9.9% and 10%, respectively.

This means that a total potential return in excess of 40% is possible for investors buying at current levels.

More bulls

Ord Minnett isn't alone in believing that GQG Partners is a great option for investors right now.

Morgans recently put an add rating and $2.45 price target on its shares. It said:

An assessment of some of GQG's FUM shows some outflows likely occurred directly post the Adani news. While there is some near-term outflow risk (including headline risk in the imminent FUM update given previous flow strength), based on fund performance we do not expect this to persist for an extended period.

Uncertainty on the investment performance impact of the Adani news was high at the onset, but can now be assessed and has been minor to-date (Adani vehicles -11% to +14%; EM outperformance in Nov). There is some outflow risk and Adani news flow risk (if GQG remains invested), but we believe there is solid underlying business strength and value at ~9.5x FY25F PE.