Shares of Hamilton Lane could be due for a turnaround as fears over risks tied to private credit and artificial intelligence disruption prove “overblown,” according to JPMorgan. The investment bank upgraded Hamilton Lane to overweight from neutral. It maintained its $166 price target on shares, suggesting nearly 58% upside from Wednesday’s close. “Although we are not sufficiently erudite on the AI subject to confirm or dispel broad market fears as warranted or not, we do believe that the recent price action, which has seen North American alternative asset managers trade off 17% on average, may be overblown,” JPMorgan analyst Kenneth Worthington said Thursday in a note to clients. Hamilton Lane shares have plunged nearly 22% in 2026 as concerns over asset managers’ exposure to a potential private credit crisis have swirled. In addition, investors have sold the stock as some AI-powered financial planning tools appear poised to take some business away from asset managers. HLNE YTD mountain The asset management stock is down nearly 22% in 2026. However, Hamilton Lane has limited exposure to private credit and strong wealth flows, so recent concerns shouldn’t deter investors from buying the stock, according to JPMorgan. The recent selloff in Hamilton Lane is “unwarranted given HLNE’s more limited exposure to the private credit market, recent wealth flows showing sustained strength through January (latest data), and the story specific benefit of HLNE’s largest individual drawdown series…due to commence booking inflows in the near term,” Worthington wrote. The asset management stock also is poised to benefit from its stable fee-based business model, according to the analyst. “Unlike alternative asset managers, HLNE generates the vast majority of its earnings from management fees, which are more stable than incentive fee earnings,” Worthington wrote. The analyst added that Hamilton Lane has “sales growth above that of the broader peer set in a highly valued asset.” JPMorgan’s call falls in line with consensus on Wall Street. Of the seven analysts covering Hamilton Lane, five have a buy or strong buy on the stock.
