Impax’s momentum continues to build
Impax Asset Management (IPX:AIM) 150.5p
Gain to date: 18.9%
Original entry point: Buy at 126.6p, 21 September
Our bullish stance on sustainable investment focused asset manager Impax Asset Management (IPX:AIM) is paying off. The company’s recent acquisition of US peer Pax World Management has clearly sparked renewed interest in Impax.
The deal, expected to close by February next year at the latest, will add an extra 42% of assets under management (AUM). This would bring the company’s AUM to £10.3bn, and potentially attract more institutional investors to the firm’s products.
Investor sentiment towards the asset manager is extremely positive at the moment despite tough regulations such as MiFID II coming in early next year. The company was already enjoying a successful 2017 even before the acquisition news broke.
Back in May, we flagged the company due to the large amount of inflows into its funds.
Stuart Duncan, analyst at Peel Hunt, notes this pattern is continuing as Impax took in £402m in net new money in the three months to 30 September.
Duncan has upgraded his 2017 pre-tax profit and earnings per share forecasts both by 6%, to £8.4m and 5.1p respectively.
Shares says: Keep buying the stock as the company is set to benefit from a greater US presence through its Pax deal.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
- Streamlined BAE aims to fly
- Capita announces new CEO
- Online orders heat up Domino’s shares
- Can exploration make a comeback after North Sea oil discovery?
- Where next for the UK stock market?
- Energy price cap threatens Centrica’s earnings and dividend
- Polar launches new megatrends fund
- Christmas comes early for Cranswick