Affiliated Managers Group Q2 adjusted EBITDA beats

Overview

• US asset manager's Q2 Adjusted EBITDA beat analyst expectations

• Q2 Economic EPS rose 54% yr/yr, reflecting growth in alternative strategies

• Company reported record AUM of $942 bln and repurchased $189 mln in common stock

Outlook

• Company expects increasing opportunities to invest in growth through new and existing Affiliates

• AMG says it is positioned to capitalize on growth opportunities and drive durable earnings growth

Result Drivers

• ALTERNATIVE STRATEGIES - Co said 54% yr/yr rise in Economic EPS was driven by greater participation in alternative strategies

• RECORD NET INFLOWS - Co reported $13 bln in net client cash flows, including record $29 bln in alternative net inflows

• GROWTH INVESTMENTS - AUM growth attributed to $69 bln from investments in new Affiliates and $56 bln in net client cash flows over 12 months

Company press release: ID:nGNX95w05b

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management fund operators peer group is "buy."

• Wall Street's median 12-month price target for Affiliated Managers Group Inc is $431.00, about 19.7% above its July 29 closing price of $360.07

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 28 - Asset manager Invesco's quarterly profit rises on strong inflows, higher fees

• July 30 - KKR's profit jumps on dealmaking strength, asset growth

• July 30 - Amundi beats estimates with Q2 net inflows, profit jumps 29%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)