FoggyIsle.XYZ | Market's view on Mattioli Woods

There are concerns that the takeover valuation of MTW is considered low, especially given the recent depressed share price.
MTW’s share price had a notable drop in September 2023 but recovered within a month, with analysts projecting a potential increase to 750/800 from the current 580.
A comprehensive analysis of H1-24 shows an 8% year-on-year increase in revenue, with notable growth driven by the core pensions business. The company maintains a strong net cash position, which includes dividends and payments related to acquisitions.
The acquisition of Doherty is seen as strategically beneficial, adding significant assets under advice and a large number of private clients.
There is discussion about the differences between underlying and statutory profit, questioning the normalcy of including contingent remuneration and software costs in adjusted EBITDA.
The FY results presentation highlighted growth in assets under management and revenue, with a focus on organic growth initiatives and strategic planning.
Trading updates indicate that MTW’s forward Price/Earnings ratio is below the sector median, suggesting undervaluation and potential for re-rating.
The acquisition of a new company is considered expensive from a historical perspective, but it is accretive to earnings and supported by a strong balance sheet.
There is speculation about the potential for MTW to receive a takeover bid due to ongoing sector consolidation.
There’s a general sentiment that MTW’s defensive characteristics and high percentage of recurring revenues make it an attractive investment, despite sector challenges.
Observations were made about significant market movements and trading volumes, suggesting potential bottoming or a forthcoming bounce in MTW’s stock price.