Broker Berenberg upped its share price target for Alpha Financial Markets Consulting PLC (AIM:AFM) after it released full-year results and said it would not be surprised if there were further upgrades over the course of the next year.
The house broker nudged its price target to 480p from 470p and reiterated its ‘buy’ recommendation after the results showed revenues and underlying profits around 1% ahead of forecast, with earnings per share beating the estimate by 7%.
“Overall, the company has delivered an exceptional year of performance,” said analyst Calum Battersby.
The results showed 61% top-line growth, of which 31% was organic, 56% growth in underlying profits (EBITDA) and 44% EPS growth.
“We believe these results effectively prove the strength of Alpha FMC’s business model and competitive advantage, showing the degree to which the company must be taking share, while successfully rolling out its model into new geographies and end-markets.”
Given the less certain macroeconomic outlook and “obvious impact on the asset and wealth management sector”, Berenberg has limited its upgrades at this point and kept forecasts largely unchanged.