On Thursday, Deutsche Bank adjusted its outlook on Antin Infrastructure Partners SA (ANTIN:FP) shares, lowering the price target to €14 from the previous €18, while maintaining a Hold rating.
The firm cited a challenging fundraising environment as a key factor, noting that Antin has seen €2.2 billion in combined inflows over the past five quarters. This capital inflow has resulted in a modest increase of 5% year-over-year in Funds from Permitted Activities under Management (FPAuM) as of March 2024.
The bank's analyst expressed a conservative stance on the company's near-term growth prospects, despite a belief in Antin's long-term growth potential and high profitability.
Projections indicate only a gradual improvement in cash flows and FPAuM growth for the years 2024 and 2025, with an anticipated annual growth rate of 3%. This slow growth is expected to lead to limited bottom-line expansion for the current and following year.
The analyst pointed out that Antin's stock performance has been lackluster, showing a 12% decline year-to-date and a 20% drop year-over-year, lagging behind most of its peers. According to the analysis, this performance seems to align with the current outlook.
Antin's valuation is currently at 17 times the estimated 2025 earnings and 12 times the 2026 earnings, which Deutsche Bank considers a fair assessment of the company's risk and reward profile.
In light of these factors, the price target has been revised to €14, reflecting updated forecasts for Antin Infrastructure Partners SA. The new target aims to account for the anticipated slow pace of recovery in fundraising and growth metrics over the next few years, with expectations set for a more significant improvement by 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.