Five-star analyst Gurjit Kambo is bullish on these two asset managers
Analyst Gurjit Kambo assesses stocks in the financial sector in the UK, US and German markets, focusing on asset management and wealth management stocks – here are two stocks he looks at has been concentrated in recent months.
Using the TipRanks Expert Center tool, we selected two stocks: Intermediate Capital (GB:ICP) and the Bridgepoint Group (GB: BPT)both of which are UK based fund management companies with global investments.
Kambo is an executive director at JP Morgan and has approximately 20 years of experience in the financial industry. Before joining this company, he worked with Credit Suisse, Numis Securities, HSBC and PwC.
Kambo is a five-star rated analyst on TipRanks. It is ranked 673 out of 8,000 analysts and 1,088 out of 21,761 total experts on TipRanks. It has an average return of 10.6% per trade with a success rate of 65%.
Let’s discuss stocks in detail.
Bridgepoint is a UK-based asset fund management group, focusing on private equity transactions. It invests in six main sectors: business services, consumer, financial services, healthcare, high-tech industries and technology.
In July 2022, the company released its interim results, which were ahead of market expectations. Its assets under management (AUM) were €37.1 billion with 400 fund investors worldwide.
Assets under management increased by 30% compared to the first half of 2021. The company’s pre-tax profit was £48.3 million, compared to £40.4 million in the first half of 2021.
The company expects its annual results to be in line with expectations.
It also declared an interim dividend of 4p per share, 10% more than the final 2021 dividend.
Shareholders were happy with the results and the stock rose 10% after the results were announced. Overall, the stock has traded down almost 50% over the past year.
Bridgepoint Group Share Price Forecast
According to TipRanks analyst rating consensus, Bridgepoint Group has a Moderate Buy rating based on two buy ratings and one hold rating.
BPT’s average price target is 377.67p. which is about 52% higher than the current price. The price has a high and low forecast of 440p and 323p, respectively.
Intermediate Capital is a private equity firm with two business segments: fund management and investment.
2022 was a big year for the company: it raised $22.5 billion in funds. The year also saw an increase in client base, with total assets under management reaching $72 billion. The results gave the company confidence to accelerate its $40 billion fundraising goal to be achieved by March 2024, instead of 2025.
The company started its 2023 financial year on solid foundations. It released its first quarter trading update in July 2022. The fund raised during the quarter was $4.5 billion, with a total AUM of $71.3 billion.
The company’s outlook remains positive with record fundraising and a markedly improving customer base.
Is Intermediate Capital Group a buy?
According to TipRanks analyst rating consensus, Intermediate Capital is a strong buy, based on four buy ratings.
The ICP price target is 2,496.2 pence, implying an upside potential of 81.4%. The high and low predictions for the stock are 2,700p and 2,300p respectively.
Kambo is extremely bullish on the stock and has a price target of 2,700p, which is 96.2% higher than the current price level.
Both companies have delivered strong growth performance in volatile market conditions and are well positioned to deliver strong business performance.