In a report released yesterday, Etienne Ricard from BMO Capital maintained a Hold rating on Fiera Capital A (FSZ – Research Report), with a price target of C$8.00.
Etienne Ricard has given his Hold rating due to a combination of factors influencing Fiera Capital A’s stock. The company has experienced positive developments in its in-house public market strategies, which have shown the best net inflows in two years, alongside continued net inflows in private markets. These factors suggest a sustainable dividend yield of 14%, which could appeal to yield-focused investors. However, the company’s financial flexibility is limited, and there is a need to monitor for a better risk-reward balance.
Despite the improvements, challenges remain, particularly with PineStone sub-advised strategies, which have seen significant outflows. The company’s rising leverage and limited financial flexibility in volatile markets are concerning. Additionally, the target price for Fiera Capital A’s stock has been reduced due to recent market depreciation. These elements contribute to the Hold rating as the stock’s risk-reward profile is not yet compelling enough to warrant a more favorable recommendation.
FSZ’s price has also changed moderately for the past six months – from C$9.260 to C$6.250, which is a -32.51% drop .