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Investing.com -- Deutsche Bank (ETR:DBKGn) has initiated coverage of Allfunds (AS:ALLFG) with a “buy” rating and a price target of €8.50, suggesting a potential return of approximately 1.75x over the next three and a half years. The stock last closed at €6.91.
In the initiation report, analyst David McCann said the investment case for Allfunds centers on its capacity to deliver consistent organic growth at a reasonable valuation.
The bank forecasts that from fiscal year 2024 to 2028, Allfunds could achieve compound annual growth of 15% in platform assets under administration, 10% in group revenue, and 15% in earnings per share based on Deutsche Bank’s estimates.
Deutsche Bank noted that Allfunds is currently trading at around 16x projected 2025 earnings per share on a company-reported basis.
Adjusted for what the bank describes as several “below-the-line” items, the multiple rises to roughly 18x on its own metrics.
By fiscal 2028, the valuation is expected to decline to about 10x to 11x earnings, according to the report.
The brokerage’s assessment underscores confidence in the company’s long-term earnings potential and margin profile.
Deutsche Bank sees the current share price offering an attractive entry point in light of its medium-term growth outlook.