Broker Peel Hunt upped its share price target for Impax Asset Management Group PLC (LON:IPX) to 565p from 420p on Wednesday after the sustainability-focused investment group supplied a year-end trading update.
Assets under management ended the financial year to September 2020 at GBP20.2bn, up 11.4% over the past quarter since and up over 34% over the year.
“Even over what would typically be the quieter summer months, Impax has continued to generate impressive levels of net flows,” the Peel Hunt analysts said.
Having already increased forecasts twice since the market lows in March, given the positive momentum and AUM comfortably ahead of the assumed year-end point of GBP19.3bn, the analysts made further adjustments to revenue margins and costs, increasing full year profits before tax and earnings per share 4% to GBP22.65mln and 13.6p respectively.
Forecasts for the next year were moved 8% higher and based on conservative assumptions regarding flows, with GBP30.1mln PBT and 18.1p EPS now pencilled in.
“We believe there is still an attractive pipeline of new business and interest in the investment products remains very healthy,” the analysts said, reiterating their ‘buy’ recommendation.