BMO raises AGF Management price target to Cdn$12 from Cdn$11

Published 23/01/2025, 19:10
BMO raises AGF Management price target to Cdn$12 from Cdn$11

On Thursday, BMO Capital Markets adjusted its price target for AGF Management Ltd. (AGF/B:CN) (OTC: AGFMF), increasing it to Cdn$12.00, up from the previous Cdn$11.00, while keeping a Market Perform rating on the stock. This adjustment comes after the financial services company reported its fourth-quarter results for the year 2024.

AGF Management Ltd. disclosed an adjusted EBITDA of Cdn$40 million for the fourth quarter of 2024, which closely aligned with BMO Capital's and the consensus estimate of Cdn$41 million and Cdn$37 million, respectively. The adjusted earnings per share (EPS) of Cdn$0.45 surpassed both BMO Capital's and the consensus estimate of Cdn$0.40. However, after accounting for one-time tax items, the adjusted EPS was consistent with expectations.

Despite showing a positive net flow of Cdn$5 million, AGF Management's net inflows fell short of BMO Capital's anticipated Cdn$50 million for the quarter. Additionally, the company's quarter-to-date flows for the first quarter of 2025 were reported to be flat and below expectations.

BMO Capital's analyst cited improved guidance on selling, general, and administrative expenses (SG&A) as the primary reason for the increased estimates. Based on the more favorable 2025 SG&A outlook, the analyst has raised both the adjusted EBITDA and adjusted EPS estimates for 2025 by 5%.

The report concludes with a reiteration of the Market Perform rating for AGF Management Ltd., indicating that the analyst anticipates the stock to perform in line with the broader market.

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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