On Thursday, BMO Capital maintained its Market Perform rating on shares of AGF Management Ltd. (AGF/B:CN) (OTC: AGFMF), with a steady price target of Cdn$9.00.
The firm acknowledged the company's second-quarter results, which surpassed their earnings estimates due to slightly better fee income and reduced trailer fees, though this was somewhat balanced by increased selling, general, and administrative expenses, along with higher interest costs.
AGF Management reported an adjusted EBITDA of Cdn$37 million and adjusted earnings per share (EPS) of Cdn$0.35 for the quarter. These figures exceeded BMO Capital's projections of Cdn$35 million in adjusted EBITDA and Cdn$0.34 in adjusted EPS. The reported results were in line with the consensus EPS estimation but slightly higher regarding the EBITDA.
Despite the better-than-expected earnings, AGF Management experienced Cdn$112 million in net outflows, which was more significant than BMO Capital's forecast of Cdn$50 million in net outflows. This indicates a challenge in asset retention for the investment management firm during the quarter.
BMO Capital has opted not to adjust its earnings predictions for AGF Management for the years 2024 and 2025. The price target also remains unchanged at Cdn$9.00, reflecting the firm's view that the stock is adequately valued at its current level considering the quarterly performance and financial outlook.
The rating and price target are based on the latest financial performance and projections for AGF Management, as the company navigates the market environment and aims to manage its operational costs and investment inflows.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.