Sweden's Catella Q2 underlying operating profit improves
Sweden's Catella Q2 underlying operating profit improves
Overview
Sweden property investment specialist's Q2 underlying operating profit improved to SEK 8 mln, up SEK 43 mln yr/yr
Company launched SEK 100 mln share buyback, repurchasing 2.5 mln shares, 2.95% of shares outstanding
Outlook
Catella says market conditions remain mixed with ongoing global uncertainty
Company aims to increase recurring and predictable revenues for greater resilience
Catella continues to invest selectively in capabilities to support long-term growth
Result Drivers
CORPORATE FINANCE GROWTH - Corporate Finance revenues grew 38% yr/yr, offsetting lower Investment Management revenues
FIXED FEE INCOME - Fixed fees represented 59% of total revenues, providing greater resilience and a more consistent earnings profile
COST SAVINGS & STREAMLINING - Discontinued Catella Property Investment Management in Sweden and returned its AIFM licence, supporting cost efficiencies and freeing up SEK 20 mln of cash
Company press release: ID:nMFN4W9p0h
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Assets Under Management |
| SEK 161 bln |
|
Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Catella AB is SEK28.50, about 47.5% above its August 19 closing price of SEK19.32
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Aug 18 - TPG bids $468 million for Australia's EQT; stock logs best day in 41 years
Aug 18 - Hong Kong asset manager Value Partners' H1 net profit falls despite fee income surge
Aug 17 - Guotai Junan H1 revenue rises 37% on higher commission and fee income
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)