Citi raises Allfunds stock price target to EUR 8.80, maintains buy

Published 14/05/2025, 08:44
Citi raises Allfunds stock price target to EUR 8.80, maintains buy

On Wednesday, Citi analyst Andrew Coombs adjusted the price target for Allfunds Group Plc (ALLFG:NA) stock, increasing it to EUR 8.80 from EUR 8.60, while reiterating a Buy rating. Coombs highlighted that Allfunds shares have significantly underperformed in the last year and a half. He believes that despite this underperformance, the company’s valuation now presents a disconnect from its improved fundamentals.

Coombs pointed out that Allfunds’ current valuation, at a 9.4x 2-year forward consensus PE, aligns with that of asset managers and stands at a 40% discount when compared to platform peers. In his analysis, Coombs outlined a viable route for Allfunds to achieve 10% net flows, which would position it as the fastest-growing platform among those Citi covers. He noted that Allfunds’ net flows are three times higher than those of asset managers.

The expectation set by Coombs is that Allfunds will experience a share rerate as it continues to demonstrate strong growth in the upcoming quarters. He also increased his 2027 EBITDA estimate for Allfunds by 3%, which is now 6% above the consensus. This revision underpins the rise in the target price, which Coombs suggests offers a circa 65% upside to the current share price, reinforcing the Buy recommendation.

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