Assessing Affiliated Managers Group: Insights From 8 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Affiliated Managers Group AMG in the last three months.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Affiliated Managers Group, revealing an average target of $202.25, a high estimate of $226.00, and a low estimate of $190.00. Witnessing a positive shift, the current average has risen by 2.73% from the previous average price target of $196.88.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Affiliated Managers Group's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Affiliated Managers Group. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Affiliated Managers Group compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Affiliated Managers Group's stock. This analysis reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Affiliated Managers Group's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Affiliated Managers Group analyst ratings.

Discovering Affiliated Managers Group: A Closer Look

Affiliated Managers Group offers investment strategies to investors through its network of affiliates. The firm typically buys a majority interest in small to midsize boutique asset managers, receiving a fixed percentage of revenue from these firms in return. Affiliates operate independently, with AMG providing strategic, operational, and technology support, as well as global distribution. At the end of December 2023, AMG's affiliate network—which includes firms like AQR Capital Management, and Pantheon in alternative assets and other products (which accounted for 35% of AUM), Artemis, Genesis, Harding Loevner, and Tweedy Browne in global and emerging-market equities (28%) and Frontier, River Road, Parnassus, and Yacktman in U.S. equities (21%)—had $672.2 billion in managed assets.

Affiliated Managers Group's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Affiliated Managers Group faced challenges, resulting in a decline of approximately -3.38% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Affiliated Managers Group's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 29.97%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Affiliated Managers Group's ROE excels beyond industry benchmarks, reaching 4.17%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Affiliated Managers Group's ROA stands out, surpassing industry averages. With an impressive ROA of 1.66%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Affiliated Managers Group's debt-to-equity ratio is below the industry average at 0.7, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.