Berenberg lowers target price on Impax Asset Management

(Sharecast News) - Analysts at Berenberg lowered their target price on asset manager Impax from 440.0p to 330.0p on Tuesday as it said the group was now "navigating an uncertain market backdrop". Impax published its Q225 update on Tuesday, revealing that assets under management had decreased by roughly 26% over the period, driven by both net outflows and negative market movements.

Berenberg noted that management highlighted that it anticipates FY25 profits to be below market expectations, with market conditions highly uncertain in H2 2025, given the impact of an escalating trade war.

However, Impax also closed its acquisition of the European assets of SKY Harbor Capital Management, which should add around £1.1bn in assets under management.

"The SKY Harbor team brings new investment capabilities to Impax, including US and global short-duration high-yield credit strategies. This is part of Impax's broader focus on diversifying its offering and distribution channels, which we think will provide the business with more resilience and growth opportunities in the medium to long term," said the German bank.

Berenberg updated its forecasts, with its FY25 earnings per share estimate reducing by approximately 12% and outer years by around 19-28%, driven by factoring in Q225 figures and a decrease in its net flow expectations.

"We expect the company to continue to target a c30% adjusted PBT margin (although we forecast that it will drop below this target in FY 2025 and FY 2026 (to c25%)," it added.

Reporting by Iain Gilbert at Sharecast.com