GAM saw its share price fall over 10% by lunchtime trading on Thursday (30 August) after Credit Suisse analysts cut their target price in half amid the ongoing troubles at the firm.
Credit Suisse analysts set a new target for the stock of CHF7, down from CHF14.2, causing GAM shares to drop 10.1% to CHF7.4 points.
Furthermore, the analysts at the bank cut GAM's earnings per share estimate by 28% for 2018 and by 56% for 2019.
The new price comes just days after GAM announced how it will return cash to investors following the decision to liquidate suspended manager Tim Haywood's (pictured) absolute return bond fund range on the back of high levels of redemption requests.
The firm said it expects to return cash to 87% of investors by early September.
Despite GAM providing greater clarity to the market, Credit Suisse said there remained three major unknowns for the firm.
Tom Mills, analyst at Credit Suisse, said in the note: "(1) how much of the circa CHF3.7bn of Absolute Return Bond fund (ARBF) mandates will remain with GAM? (we assume zero).
"To what extent will there be collateral damage to the rest of GAM's franchise? (a tough call to make, but we assume circa CHF3bn of non-ARBF outflows in H2 2018 and CHF5bn in 2019).
"What remedial actions will GAM's management take on costs/investments in 2019/20? (we assume discretionary compensation is reduced and that GAM delivers on a full CHF10m of net saves to its fixed personnel and general expenses in each of those forecast years)."
GAM shares had recovered slightly and were down 5% at CHF6.92 points in early morning trading on Friday (31 August).
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