Australia's Insignia Financial jumps most in over 3 years as Citi sees cost savings

Insignia Financial

24/01/2025 03:24

** Shares of Insignia Financial  IFL.AX  rise 1% to A$4.565
    ** The 178-year-old money manager's stock rose as much as 2%
earlier in the day, marking its biggest intraday gain since
late-October 2021
    ** Citi says that there has been strong demand for
Separately Managed Accounts, resulting in A$11 bln ($6.95 bln)
of Managed Accounts Assets under Management, up 40% over the
past year
    ** Brokerage notes that only A$49 mln ($30.95 mln) of
expected ~A$1.4 bln ($884.38 mln) client transition outflows
were seen in 2Q, suggesting these net outflows may occur more in
3Q and 4Q
    ** Despite the impact of Masterkey pricing changes on
revenue margin from 2H26 onwards, IFL remains confident of
significant cost savings to offset this - Citi
    ** Co's shares hit a three-year peak on Thursday following a
matched A$3.07 bln ($1.94 bln) takeover bid from Bain Capital,
igniting a bidding war and overturning a previous rejection due
to insufficient offer
    ** 3 of 7 analysts rate the stock "Buy" and 4 as "Hold";
their median PT is A$4.40 – LSEG data
    ** Stock up 51.7% last year


($1 = 1.5830 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)
 ((Tanishk.Kumar@thomsonreuters.com;))