JPMorgan says Hamilton Lane shares could turn around after concerns about the risks associated with the disruption of private credit and artificial intelligence turned out to be “overstated”. The investment bank upgraded Hamilton Lane from neutral to overweight. It maintains a $166 price target, implying nearly 58% upside from Wednesday’s closing price. “While we are not sufficiently knowledgeable about AI issues to confirm or dispel the validity of broader market concerns, we believe that recent price movements, with North American alternative asset managers down an average of 17%, may be overstated,” JPMorgan analyst Kenneth Worthington said in a note to clients on Thursday. Hamilton Lane’s share price plunged nearly 22% in 2026 amid concerns that the asset manager was exposed to a potential private credit crisis. Investors also sold stocks as some AI-powered financial planning tools appeared poised to take over some of the work from asset managers. HLNE YTD Mountain Asset management stocks will fall nearly 22% in 2026. However, JPMorgan said the recent concerns should not deter investors from buying the stock, as Hamilton Lane has limited exposure to private credit and strong wealth flows. Hamilton Lane’s recent decline is “unwarranted given HLNE’s more limited exposure to private credit markets, recent asset flows showing sustained strength through January (latest data), and the story-specific benefits of HLNE’s largest private drawdown series as booking inflows begin in the near term,” Worthington wrote. Asset management stocks are also poised to benefit from a stable fee-based business model, the analyst said. “Unlike alternative asset managers, HLNE derives the majority of its revenue from management fees, which are more stable than incentive fee income,” Worthington wrote. The analyst added that Hamilton Lane’s sales growth was “outpacing other peers leveraging high-value assets.” JPMorgan’s call is consistent with Wall Street consensus. Five of the seven analysts covering Hamilton Lane have rated the stock a buy or strong buy.
