AGF Management price target raised to C$15 from C$12 at BMO Capital

Published 16/09/2025, 14:14
AGF Management price target raised to C$15 from C$12 at BMO Capital

Investing.com - BMO Capital has raised its price target on AGF Management Ltd. (TSX:AGF.B) (OTC:AGFMF) to C$15.00 from C$12.00 while maintaining a Market Perform rating.

The price target increase follows AGF’s third-quarter 2025 assets under management (AUM) performance, which was 4% better than BMO’s expectations. Based on this stronger AUM, BMO has increased its Q3/25 EBITDA and EPS estimates by 5% each to C$46 million and C$0.45, respectively.

BMO has also raised its 2026 EPS estimate by 8% to C$1.80, reflecting operational leverage in AGF’s business model. The firm introduced a 2027 operating EPS estimate of C$1.90.

The new C$15 target price is based on an increased EV/EBITDA multiple of 5.0x (up from 4.0x previously), which BMO attributes to an improving industry outlook. This valuation is applied to 2027 EV/EBITDA plus the carrying value of long-term investment in private alternatives, with a 25% holding company discount.

The updated target implies a 7.9x multiple on 2027 estimated earnings, with AGF currently trading at 8.1x 2025 estimated EPS.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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