On Wednesday, BMO Capital Markets adjusted its financial outlook on AGF Management Ltd. (AGF/B:CN) (OTC: AGFMF), increasing the price target to C$11.00 from the previous C$10.00. The firm maintained a Market Perform rating on the stock. BMO Capital's analyst cited higher-than-anticipated assets under management (AUM) for the fourth quarter of 2024 as the primary reason for the adjustment.
The analyst revised the estimated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter of 2024 upwards by 8% to C$41 million, compared to the prior estimate of C$38 million and surpassing the consensus of C$37 million. Similarly, the earnings per share (EPS) forecast for the same period was increased to C$0.40 from the previously expected C$0.37, which aligns with the consensus estimate.
The positive adjustment in the financial estimates is attributed to an expected net inflow of C$50 million, reflecting an improving industry environment. As a result of the anticipated better-than-expected AUM for the fourth quarter of 2024, BMO Capital also raised its 2025 EPS estimate by 9%.
The new price target reflects the updated earnings estimates and the firm's outlook for AGF Management's performance. BMO Capital's analysis points towards a favorable shift in AGF Management's financial projections, leading to the increased price target for the company's shares.
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