Affiliated Managers Group: Strategic Shift and Valuation Offer Growth Potential with OUTPERFORM Rating

In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Affiliated Managers (AMG – Research Report), with a price target of $200.00.

Alexander Paris has given his Buy rating due to a combination of factors that highlight Affiliated Managers Group’s (AMG) potential for growth and value. Despite a slight decline in revenues and adjusted EBITDA, the company’s economic EPS exceeded expectations, demonstrating resilience in its financial performance. The strategic shift towards alternative investments, which has seen significant growth, is expected to continue improving AMG’s long-term organic growth profile.
Moreover, AMG’s management has provided optimistic guidance for the upcoming quarter, with expected adjusted EBITDA and economic EPS surpassing market estimates. The company’s investments in areas of secular growth, such as digital economy and biotechnology, further bolster its growth prospects. Additionally, AMG’s shares are currently trading at a discount compared to its peers, offering an attractive valuation. These factors collectively support the reiteration of an OUTPERFORM rating and a $200 price target, suggesting a potential upside for investors.