Hold Rating Maintained for iFAST Corporation Despite Strong Performance and Ambitious Growth Targets

iFAST Corporation Ltd (AIY – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Heidi Mo from UOB Kay Hian maintained a Hold rating on the stock and has a S$8.30 price target.

Heidi Mo’s rating is based on the recent performance of iFAST Corporation Ltd, which showed positive results, especially in its Hong Kong operations. Despite delivering a stronger-than-expected 4Q24 performance with PATMI surpassing projections by 6% and 7%, the decision to maintain a Hold rating reflects the firm’s current valuation levels that are considered richer compared to its peers.
While iFAST has set ambitious goals for future growth in assets under administration, aiming for S$100 billion by 2028-2030, the current assets stand at S$25 billion, indicating a significant growth requirement. The proposed 14% increase in the final dividend payout is another positive aspect, yet the overall outlook remains cautious. Given these factors, the Hold rating suggests a balanced perspective, recognizing both the company’s achievements and the challenges it faces in maintaining its growth trajectory.