Etienne Ricard, an analyst from BMO Capital, maintained the Buy rating on Guardian Cap Cl A NV (GCG.A – Research Report). The associated price target is C$51.00.
Etienne Ricard has given his Buy rating due to a combination of factors that highlight Guardian Cap Cl A NV’s growth potential and strategic initiatives. The acquisition of Sterling Capital has significantly expanded Guardian’s presence in the U.S. market, providing a foundation for future revenue growth and operational synergies. This acquisition is expected to enhance distribution capabilities and integrate systems across subsidiaries, with a strategic goal of doubling operating earnings by 2028.
Furthermore, Guardian is experiencing positive client inflows in its quantitative and AI-driven equity strategies, as well as fixed income, which bodes well for future earnings. The anticipated inflection point for GSIM in 2025, alongside the elimination of operating losses by 2026, underscores the company’s commitment to financial improvement. Additionally, the increase in dividends and share repurchase activities reflect a strong shareholder return strategy. The stock’s current valuation, which is at a discount to its net asset value, presents an attractive risk-reward opportunity for investors.
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