Broker tips: Impax Asset Management, Moonpig
By Iain Gilbert
Date: Wednesday 05 Mar 2025
(Sharecast News) - Analysts at Berenberg lowered their target price on Impax Asset Management from 470.0p to 440.0p on Wednesday following the group's trading update earlier in the morning.
Impax revealed assets under management had decreased by roughly 16% from 31 December 2024 to 28 February 2025 but said it has also made progress on its efficiency programme.
"Management highlighted that the business remains focused on strategic priorities, including further enhancing investment processes within listed equities and growing fixed income and private markets capabilities," said Berenberg.
"We think that this diversification of investment offering will provide the business with more resilience and growth opportunities in the medium to long term."
The German bank, which reiterated its 'buy' rating on the stock, said its new target price reflected its new forecasts.
Moonpig surged on Wednesday as RBC Capital Markets initiated coverage of the stock with an 'outperform' rating and 310.0p price target.
RBC noted that Moonpig was the dominant platform in a greeting card market moving online, with the group's hard-to-replicate data and AI-led capability set to augment gifting revenue.
"The group's leading proposition and category dominance (circa 70% share of the online specialists) confer a right to win as it continues to drive the circa £1.8bn single card market online," it said. "The group's growing subscription service alongside personalised occasion reminders will drive order frequency for the c.90% of card-giving occasions that repeat on the same day each year."
RBC forecasts estimate customer and order frequency compound annual growth rates of about 2.4%/3.5% across its forecast period and also said that a data-driven platform will accelerate card-attached gifting revenue.
The Canadian bank estimates a CAGR of 3.6% for average order value across its forecast period, driven by growth in attach rate, gift bundling and card upsell. RBC said it believes this strategy will drive a FY25-27e revenue CAGR of 9.1% and an EBITDA CAGR of 10.2% - at a margin of 27.1% in FY27e - versus consensus at 8.4% for both revenue and EBITDA.
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