AGF Management: Raising Fair Value Estimate on Improved Flow and Revenue Expectations

We’ve increased our fair value estimate for no-moat-rated AGF Management to CAD 11.50 per share from CAD 9.50 to account for revised near-term expectations for assets under management, or AUM, revenue, and profitability since our last update. AGF closed out the third quarter of fiscal 2024 with CAD 49.7 billion in consolidated AUM, up 17.6% year over year, aided in a large part by the acquisition of CAD 2.6 billion in AUM as part of the Kensington Capital Partners deal (which closed in March 2024). Since that time, the company has benefited from improved market conditions that lifted consolidated AUM to CAD 51.5 billion at the end of October 2024.