Market's view on Impax Asset Management
Published on April 2024
- Impax Asset Management is currently undervalued but has the potential for a rerating according to Peel Hunt, with a target price of 700p per share.
- A stock watcher highlights a 6% dividend yield on the shares, indicating a potential income while waiting for further progress.
- Impax’s Assets Under Management (AUM) increased by £2.2bn or 6% in the first half of the year, reaching £39.6bn, with a fair value per share seen at 800p, significantly above current levels.
- A stock watcher mentions a significant sale of shares the day before an ex-dividend date, suggesting a profitable fund to invest in.
- There was a sale following the vesting of shares, not a new share issuance, correcting a previous misunderstanding.
- Ian Simm made a purchase of shares, indicating insider confidence.
- The AUM grew by £1.7bn or 4.6% in Q1, and Impax acquired Absalon Corporate Credit, a fixed income manager, seeing it as a strategic growth opportunity in the U.S.
- Dividend maintained at 77% of earnings, aligning with the company’s payout ratio guideline and yielding 6% at the current share price.
- The recent sharp increase in outflows is discussed, questioning whether it is a temporary issue or reflects a deeper problem in the ESG investing attractiveness.
- Bear points include margin pressures, increased investment costs, market volatility, and concerns about the company’s future post-CEO retirement.
- Bull points highlight a solid balance sheet, profitability, cash generation, strong market position, and growth potential in sustainable economy transitions.