Source: Sharecast
To back up their case, they pointed to the possibility that the economy's reopening could drag on retail investors' savings levels, including on the funds allocated to long-term savings.
Then there was the simple fact that share prices of both firms had registered sharp gains quarter-to-date, of 14% and 17%, respectively.
In the case of M&G, the estimated 2021 dividend yield on offer had now been pared from more than 9% at the end of March to 7.6%.
More significantly, HSBC estimated that M&G's payout ratio on free cash flow would peak at about 93% in 2023, leaving it little room to grow its dividend per share over the medium-term.
The analysts also pointed out that M&G's with-profits business was being constrained by the lack of face-to-face meetings with advisers, while speculation in the press regarding a bid from Schroders had disappeared.
So too with St.James's Place, HSBC judged the share price was now up with events, including its own short-term estimates.
Its shares were now changing hands at a 10% premium relative to its average trailing 10-year consensus price-to-earnings multiple.
More over, the shares were offering an 11% compound annual growth rate in Assets under Management and Administration, against the 18% achieved in 2014-19.
HSBC did nevertheless bump up its target prices for shares of M&G from 220.0p to 250.0p and from 1,375.0p to 1,525.0p, respectively.
