Berenberg lowers target price on Impax Asset Management
Analysts at Berenberg lowered their target price on from 560.0p to 510.0p on Friday after news broke that the group's mandate to manage St James's Place's sustainable and responsible equity fund was expected to end in February 2025.
Berenberg said the SRE fund accounted for roughly £5.2bn of Impax's assets under management, or approximately 14% of total AuM.
The German bank also noted that it understands that the mandate termination was primarily driven by St James's Place's desire to diversify SRE using an alternative investment strategy.
"We have updated our forecasts for Impax, with a c7% reduction in our FY25 EPS estimate and a c6-7% EPS reduction in the outer years. This assumes that the SJP mandate ends in Q225. We reduce our FY25 revenue forecast by c5% partially offset by a c4% reduction in operating costs," said Berenberg.
"Operating costs are lowered in our forecasts as Impax typically pays out c40-45% of pre-bonus profit as remuneration (our forecasts assume c43% is paid out in FY25)."
Reporting by Iain Gilbert at Sharecast.com
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