Crispr Therapeutics shares tumble after significant earnings miss
On Tuesday, Citi analysts made a notable adjustment to their perspective on Antin Infrastructure Partners SA (ANTIN:FP), downgrading the stock from "Buy" to "Neutral." The firm also reduced its price target on the stock from €14.90 to €11.00, signaling a change in expectations for the company’s financial performance.
The downgrade followed Antin’s fiscal year 2024 presentation, where the company provided guidance that was more conservative than Citi analysts had anticipated, particularly regarding the timing of fund activations. The analysts highlighted that the conservative outlook, coupled with increased macroeconomic volatility, could potentially dampen transaction activity in the near term.
Citi analysts pointed out that the revised guidance led them to assume later fund activations across all of Antin’s strategies. This delay is expected to postpone the anticipated increase in management fees, which is a key revenue driver for the company. As a consequence, Citi has significantly lowered its adjusted earnings per share (EPS) estimates for fiscal years 2026 to 2028, while noting that the changes to fiscal year 2025 and 2028 estimates were relatively smaller.
The analysts also emphasized Antin’s reliance on its flagship strategy, which requires both deployment and realizations before new fundraising can occur. This dependency creates a binary investment case, making the stock’s performance heavily tied to the success of this strategy. Given the uncertain macroeconomic environment, Citi analysts expressed reduced confidence in the company’s deal-making abilities.
Despite the fact that Antin’s shares appear inexpensive based on fiscal year 2027 to 2028 earnings projections, with price-to-earnings (P/E) ratios between 8 and 10, the analysts deemed the potential total return of less than 25% insufficient for a stock they consider higher risk. The firm maintained the "High Risk" designation for Antin’s stock but emphasized that the reduced price target and the downgrade to a "Neutral" rating reflect their cautious stance on the company’s near-term prospects.
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