iFAST Corporation Ltd (AIY – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrea Choong from CGS-CIMB reiterated a Buy rating on the stock and has a S$9.50 price target.
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Andrea Choong has given her Buy rating due to a combination of factors, primarily driven by iFAST Corporation Ltd’s robust financial performance and strategic initiatives. The company’s 4Q24 earnings surpassed expectations, with a notable increase in net profit attributed to reduced operational expenses and a favorable tax rate. This financial strength is further supported by the successful breakeven of their US bank operations, which highlights the company’s ability to manage costs effectively.
Another key factor in the Buy rating is iFAST’s progress with its pension projects in Hong Kong and Macau, which present potential earnings opportunities in the coming years. The smoother onboarding of ePension trustees has contributed to improved operating margins, and future contributions from the ORSO and Macau projects are expected to enhance the company’s Assets Under Administration (AUA). Additionally, iFAST Global Bank’s growth in net interest income and strategic measures to ensure profitability in FY25F add to the positive outlook. The reiteration of a target price with a swifter onboarding of ePension trustees as a potential catalyst supports the Buy recommendation.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$10.23 price target.
AIY’s price has also changed moderately for the past six months – from S$7.130 to S$7.870, which is a 10.38% increase.