After Alpha Financial Markets Consulting PLC's (AIM:AFM) pre-close trading update, broker Stifel said the shares look "oversold".
The broker reiterated its 'buy' rating and a 12-month target price of 560p based on a discounted cashflow analysis.
Adjusted EBITDA margin was just over 17%, lower than the prior year and below the group's 20% target, as a result of reduced average utilisation, partly reflecting the quieter summer months.
However, the broker noted that not only has utilisation picked up in September from the summer low but is expected to increase further during the second half, normalising to target levels.
Alpha FMC also reported robust client demand, a good pipeline of new business opportunities, and long-term structural growth drivers that give the board confidence in the outlook.
Examining the investment case, Stifel said it views a 2025 price/earnings ratio of circa 11.5x as "undemanding, and the shares oversold, with the group trading resiliently despite the macro-economic backdrop".
"Furthermore, we believe the group have material growth levers given its five-year strategy and underlying pressures in the asset and wealth management markets."