On Tuesday, JPMorgan adjusted its stance on Antin Infrastructure Partners SA (ANTIN:FP), downgrading the stock from Overweight to Neutral. The firm also revised its price target downwards to EUR14.90 from the previous EUR16.50.
The change in rating reflects a tempered outlook for the company's earnings potential and concerns over its asset class concentration and fundraising execution risk.
The new price target represents a 10% decrease from the previous target, aligning with JPMorgan's revised earnings per share (EPS) estimates for Antin Infrastructure.
The firm's analysts have reduced the 2025 EPS projection by 10%, attributing this to an anticipated delay in the activation of the Mid Cap II fund until next year. However, the estimates for 2026 and 2027 have been increased to account for the delayed fees from 2025.
JPMorgan highlighted Antin Infrastructure's reliance on a single asset class and its flagship fund as a less appealing factor for investors. This focus, coupled with a slower deployment pace compared to industry peers, suggests a higher execution risk, particularly around the company's fundraising activities. These concerns have prompted JPMorgan to adopt a more cautious view of the stock's prospects.
The downgrade to Neutral indicates a shift in JPMorgan's recommendation, signaling a less optimistic assessment of Antin Infrastructure's market position and future performance.
Investors and market watchers will be monitoring the company's progress in fund activation and deployment to gauge the impact of these factors on its financial health and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.