National Bank Financial Resumes Coverage on Fiera Capital Corporation with an Outperform Rating - Video Research Alert on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - October 29, 2013) - National Bank Financial has resumed coverage on Fiera Capital Corporation (TSX: FSZ). Analyst Shubha Khan gives the company an outperform rating, and a12-month target of $15.00, a premium of 22.7% to the $12.22 price the day the report was issued. Fiera also pays a quarterly dividend of $0.10, giving investors a 3.3% yield, based on the $12.22 price.
InvestmentPitch.com has produced a "video research alert" about Fiera Capital based on the National Bank Financial report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Fiera" in the search box.
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With offices in Montreal, Toronto, Calgary, Vancouver, Halifax and New York, the firm has over 240 employees, and is one of only a handful of full service, multi-product investment firms in Canada offering clients a proven top tier track record in Canadian and foreign equity and fixed income management, as well as depth and expertise, in asset allocation and non-traditional investments.
The company is the 3rd largest publicly-traded, independent asset manager in Canada and the 9th largest overall, with more than $64 billion in assets under management. This number includes the recent acquisition of 2 U.S. based private wealth managers for $165 million.
The acquisitions of Bel Air Investment Advisors in Los Angeles and Wilkinson O'Grady in New York, provide Fiera with an experienced US investment team and a platform for future growth in the US market. The company anticipates that these transactions, which are expected to close on October 31st, will add $8.5 billion to assets under management. Although private wealth assets will increase to 14% of total assets under management from 3%, the revenue contribution of these assets will increase from 9% to approximately 36%.
On September 19th, Fiera issued 9.8 million shares at $10.75 in a bought deal private placement for gross proceeds of $105 million. The remainder of the cost of the acquisitions will be funded using a combination of existing cash resources and additional debt through a new $250 million credit facility.
As a result of these acquisitions, National Bank has increased its 2014 earnings per share estimate from $0.66 to $0.78, and the 2015 forecast from $0.73 to $0.90. The company currently trades at $13.50, below the $15.00 target price, and with 56.6 million shares outstanding, the company is capitalized at $764 million.
For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbf.ca.
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Barry Morgan, CFO