Analysts at Berenberg raised their target price on asset manager Impax Asset Management from 1,360.0p to 1,400.0p, stating the firm had grown through “the slow summer”.
Impax posted total assets under management growth of roughly 8% quarter-on-quarter to £37.2bn in the three months ended 30 September, roughly 3% ahead of Berenberg’s £36.0bn estimate.
The German bank’s stated most of Impax’s expansion was a result of positive inflows of around £1.5bn, representing an annualised net organic growth rate of about 17%.
“While this level of organic growth represents a slowdown versus Q3, it is in line with the normal seasonality of slower flows during the summer months,” said Berenberg.
The analysts also noted that Impax reported positive investment performance of approximately £1.2bn over the period, representing a quarterly return of 3.5%, better than the FTSE All-Share Index at 1.1% over the same period.
“This is especially impressive given the recent falls in global equity markets. We think these numbers are supportive for the long-term investment case and highlight Impax’s future potential as a long-term growth story,” concluded Berenberg, which also reiterated its ‘buy’ rating on the stock.