Fiera Capital A: Hold Rating Amid Strategic Dividend Reduction and Leadership Transition

Analyst Etienne Ricard from BMO Capital maintained a Hold rating on Fiera Capital A (FSZ – Research Report) and keeping the price target at C$8.00.

Etienne Ricard has given his Hold rating due to a combination of factors influencing Fiera Capital A’s current market position. The decision to reduce the dividend payout is seen as a positive move, providing the company with greater flexibility in capital deployment. This strategic change is expected to enhance financial stability and offer more options for reducing leverage, repurchasing shares, or pursuing acquisitions.
However, despite these positive developments, Ricard notes the limited visibility into a sustained improvement of net flows, which is crucial for driving multiple expansion. The appointment of Maxime Ménard as the new global president and CEO is another factor considered in the rating, as it brings leadership succession with a focus on leveraging Fiera’s multi-asset solutions. Yet, the stock’s current trading at a discount and the unchanged target price of $8.00 suggest a balanced view, leading to the Hold rating.

Ricard covers the Financial sector, focusing on stocks such as goeasy, Sprott, and TMX Group. According to TipRanks, Ricard has an average return of 21.8% and a 64.42% success rate on recommended stocks.

In another report released on April 28, Desjardins also maintained a Hold rating on the stock with a C$6.25 price target.