Analyst Ling Lee Keng from DBS maintained a Buy rating on iFAST Corporation Ltd (AIY – Research Report) and keeping the price target at S$10.88.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ling Lee Keng has given his Buy rating due to a combination of factors that highlight iFAST Corporation Ltd’s strong growth potential and strategic advancements. The company has demonstrated continued strength in its assets under administration (AUA), reaching a record-high of SGD25.01 billion by the end of 2024, which represents a significant year-over-year increase. This growth is supported by the successful progress of its ePension business, which is expected to drive double-digit growth in 2026 despite some near-term earnings softness in Hong Kong.
Additionally, iFAST Global Bank (IGB) is seen as a significant valuation catalyst, offering synergistic benefits through its integration with iFAST’s digital platform. This integration promises faster growth and reduced costs, enhancing the company’s overall value proposition. Furthermore, iFAST’s ambitious target to reach SGD100 billion in AUA by 2028-2030 underscores its long-term growth strategy, supported by a combination of organic and potentially inorganic growth drivers. The company’s valuation approach, combining discounted cash flow (DCF) and sum-of-the-parts (SOTP) methods, reflects its robust potential, leading to an increased target price of SGD10.88, which justifies the Buy rating.
In another report released today, UOB Kay Hian also upgraded the stock to a Buy with a S$7.28 price target.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AIY in relation to earlier this year.