Market's view on Foresightgr
Published on April 2024
- Ameriprise has been identified as highly acquisitive, known for past acquisitions like BMO and potentially targeting FSG, likened to the recent acquisition of Gresham House by Searchlight Capital.
- FSG is noted to be on the edge of the Zulu screen due to marginal relative strength, with the Zulu screen historically performing well.
- Foresight shares are considered a good buy due to solid fundamentals, despite a large number of director sells.
- The expectation is set for FSG shares to rise due to a buyback and generally being undervalued in an oversold market condition.
- FSG is also positioned well on the Zulu screen, being one of the only two companies listed, promising potential value.
- The recent movement in FSG’s stock is attributed to interest in green infrastructure driven by actions from companies like Cerberus amid peaking interest rates.
- FSG’s valuation is defended based on future cash flows rather than traditional metrics like earnings or assets, reflecting typical valuation methods for infrastructure funds.