Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - TD Cowen raised its price target on Affiliated Managers Group (NYSE:AMG) to $287.00 from $255.00 on Monday, while maintaining a Buy rating on the stock. The company, currently trading near its 52-week high of $220, has demonstrated strong momentum with a 28% return over the past year. According to InvestingPro analysis, AMG shows potential upside from current levels.
The price target increase represents a more than 10% boost from the previous target, with TD Cowen citing potential structural undervaluation of the company by investors. This view aligns with InvestingPro data, which indicates AMG trades at a reasonable P/E of 15.26x while maintaining strong financial health metrics.
In its analysis, TD Cowen raised segment target multiples to 20x for Private Markets and 12x for Liquid Alts, while maintaining a 7x target multiple on the equities platform.
The firm noted that AMG’s management has been executing strongly across multiple areas, including sourcing attractive new affiliates, driving growth, proactively returning capital, and franchise migration.
TD Cowen also mentioned the impact of the Convest transaction, which may reduce earnings by approximately 1% but is expected to boost AMG’s cash position by around $250 million, representing about 4% of the company’s current market capitalization.
In other recent news, Affiliated Managers Group (AMG) has seen significant developments. Goldman Sachs upgraded AMG’s stock from Neutral to Buy, citing a positive growth outlook with a price target of $218. This upgrade is based on expectations of increased organic base fee growth and momentum in private markets affiliates. Additionally, TD Cowen raised its price target for AMG to $196 from $168 while maintaining a Hold rating. This decision followed AMG’s first-quarter 2025 performance, which showed improved financial guidance and a robust deal pipeline.
Furthermore, AMG announced the appointment of Thomas M. Wojcik as its new President. Wojcik, who will continue as Chief Operating Officer, brings extensive experience from his previous roles, including Chief Financial Officer at AMG and various leadership positions at BlackRock (NYSE:BLK). These recent developments reflect strategic moves and positive analyst outlooks for the company.
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