AGF Management upgraded to Perform at RBC as Q4 earnings impress
Jan. 26, 2023 10:39 AM ETAGF Management Limited (AGF.B:CA), AGFMFBy: Liz Kiesche, SA News Editor
- RBC Capital Markets analyst Geoffrey Kwan upgraded AGF Management (AGF.B:CA) (OTCPK:AGFMF) to Sector Perform from Underperform as the asset manager's Q4 results showed better-than-expected performance overall, making its risk-reward profile more balanced.
- Q4 earnings reflected higher-than-forecast investment income and lower-than-forecast depreciation and amortization and tax rate, partly offset by lower-than-forecast management fee revenue and higher-than forecast SG&A expense, Kwan pointed out.
- "Despite industry net redemptions, AGF's (AGF.B:CA) net sales performance has been more resilient than we expected. Furthermore, overall investment performance is good vs. peers based on 1-year quartiles," the analyst wrote in a note to clients.
- Still, Kwan remained slightly cautious on his near-term outlook for has asset manager coverage.
- His Sector Perform rating contrasts with the SA Quant rating of Strong Buy and aligns with the average Wall Street analyst rating of Hold.
- AGF (AGF.B:CA) shares have risen 14% in the past year, with 26% advance in the past six months, according to SA's momentum tab.