Hold Rating Maintained as Outflows and Leverage Offset Structural Efficiencies; $6 Price Target Reiterated

Fiera Capital A, the Financial sector company, was revisited by a Wall Street analyst on May 8. Analyst Graham Ryding from TD Cowen maintained a Hold rating on the stock and has a C$6.00 price target.

Graham Ryding has given his Hold rating due to a combination of factors, including ongoing net outflows and their impact on assets under management and earnings growth, even as the company expects an additional $3.6 billion of redemptions in the next quarter. While recent revenue and EBITDA came in below expectations because of lower AUM, stable margins supported by structural cost efficiencies and a constructive outlook for private markets help offset some of these pressures.

At the same time, leverage has risen modestly and remains elevated, with management planning to use free cash flow for both debt reduction and reinvestment, which tempers the near-term risk profile but does not yet warrant a more positive stance. The growing contribution from private markets, improving cost discipline, and a focus on diversifying distribution by geography all provide upside potential over the medium term, but the persistence of outflows and higher leverage lead Ryding to keep a cautious view and maintain a $6 price target with a Hold recommendation.

In another report released today, BMO Capital also maintained a Hold rating on the stock with a C$7.00 price target.