** Shares of investment manager Federated Hermes rise as much as 4.5%, last down 3.4% at $39.94

** TD Cowen upgrades FHI to "buy" from "hold"; raises PT to $46 from $35, a 19% upside to stock's last close

** Brokerage now sees a path to favorable long-term flows inflection at FHI as interest rates decline

** Adds that it expects FHI to be a major money markets beneficiary

** Analysts feel the start of the rate normalization cycle in the U.S. is providing a clear tailwind to money market funds as institutions look to lock in investments with a higher return for a longer duration in a falling rate environment

** Four of eight brokerages rate the stock "buy", and four "hold"; median PT is $41 - LSEG

** As of last close, FHI shares were up 17.6% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))