BMO maintains Market Perform rating on AGF shares with steady price target

Published 26/09/2024, 13:22
BMO maintains Market Perform rating on AGF shares with steady price target

BMO Capital has maintained its Market Perform rating on AGF Management Ltd. (AGF/B: CN) (OTC: AGFMF), with a steady price target of Cdn$10.00.

The firm's analysis followed AGF Management's third-quarter financial results, which showcased an adjusted EBITDA of Cdn$40 million and adjusted earnings per share (EPS) of Cdn$0.37.

These figures surpassed BMO's predictions of Cdn$37 million for EBITDA and Cdn$0.35 for EPS, and aligned with consensus estimates for EPS while exceeding them for EBITDA.

Increased performance fees from alternative investments and higher fair value adjustments bolstered the company's earnings. However, these gains were somewhat mitigated by a decline in fee income and an uptick in selling, general and administrative expenses (SG&A). The net inflows reported by AGF Management amounted to Cdn$14 million, which, although positive, fell short of the anticipated Cdn$50 million.

BMO Capital noted that despite the better-than-expected quarterly results, there would be no alterations to the future earnings projections for AGF Management.

The firm's stance on the company's performance and the Cdn$10.00 price target remains unchanged, reflecting a cautious outlook on AGF's prospects.

AGF Management's recent financial performance indicates a mixed outcome with certain financial metrics exceeding expectations, while others, such as net inflows, did not meet the projected targets.

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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