Regal Partners shares extend gains as Morgans hikes target price
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The news: Regal Partners shares extended gains after Morgans reiterated its 'buy' rating on the investment manager, due to a better-than-expected profit outlook released by the company on Friday.
The numbers: Regal shares were up 4.5% to $3.03 at 12:30pm AEST, after jumping 9% on Friday.
Morgans lifted its 12-month target price by 7.6% from $3.30 to $3.55.
Regal guided first-half normalised net profit after tax "at least $40 million". Morgans analyst Liam Schofield said this was a "notable beat" to consensus forecasts of $34.6 million, largely due to upgraded performance fee expectations of "at least $40 million", compared to prior forecasts of "at least $35 million".
The context: Schofield said strong investment performance, fund inflows and acquisitions have seen Regal increase funds under management (FUM) fivefold since June 2022, when Regal Funds Management merged with VGI Partners.
The analyst said that whilst difficult to forecast, he is confident Regal can continue to grow FUM as performance persists and as the company's diverse range of alternative strategies reach scale.
The source: Morgans research
