In a report released today, Alexander Paris from Barrington reiterated a Buy rating on Affiliated Managers (AMG – Research Report), with a price target of $215.00.
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Alexander Paris has given his Buy rating due to a combination of factors including Affiliated Managers Group’s strategic shift towards areas of secular growth. With significant investments totaling $1.8 billion over the past five years, AMG has successfully transitioned its business model towards private markets and liquid alternatives. This strategic evolution is anticipated to bolster the company’s long-term organic revenue and earnings growth potential.
Additionally, despite the challenges faced in the equities sector, AMG’s long-term organic growth profile has shown considerable improvement. The stock is also trading at a discount compared to its peer group, with a current valuation of 6.9x/6.5x adjusted EBITDA against the industry average of 8.0x/7.5x. These factors contribute to a promising outlook, prompting Paris to reiterate an OUTPERFORM rating and raise the 12-month price target to $215, indicating a potential upside of approximately 16%.