After the Alpha Financial Markets Consulting PLC (AIM:AFM) update this morning, which revealed trading in line with full year expectations, analysts at Stifel and Peel Hunt said the shares offer an attractive entry point for investors.
The consultancy group said adjusted EBITDA was on track to come in at £42-43 million, following an improvement in trading after a slower-than-planned January.
Alpha ended the financial year with overall consultant utilisation at close to target levels in March.
"Whilst the group has experienced a difficult FY24E, given the macro backdrop, commentary of signs of improvement coupled with its market leading service offering, strong position with asset management clients and significant levers for growth, give us confidence that Alpha will generate shareholder value over the medium term," said Stifel analyst Jacob Armstrong.
He said the brokerage views the current valuation of circa 12.5 times 2025 forecast earnings "as representing an attractive entry point into the group" more than a 25% discount to its historical average P/E ratio.
At Peel Hunt, analyst Christopher Bamberry said: "In our opinion, Alpha, with its strong competitive positioning, remains well placed to exploit the significant growth opportunities for its services when the supply and demand dynamics in the global consulting market rebalance."
Peel's target price is 395p, versus the last close at 312p, while Stifel's is a more bullish 440p.