iFAST: Counter is up 5.7% today, after DBS Vickers initiated coverage on the funds and investments distribution provider with a Buy call and TP of $1.60.
The investment thesis on iFast stems from the group being a direct proxy to the growing wealth management industry, while benefiting from digital finance. Overall, the broker expects the group to register a 20% growth in AUM for FY15-17.
Other new business initiatives undertaken by iFast, will include the recent approval by MAS for iFast to provide custodial services for securities to include bonds and ETFs (subjected to additional licensing conditions). Plans to distribute these products should take place by 2Q15, which will help to improve the group's AUM over time.
Going forward, other potential catalysts for iFast will include M&As and the successful execution of its China operations, with 70% of its IPO proceeds being earmarked for the use of M&As and expansion into the Chinese market.
At the current price, iFast trades at 30.8x FY15E P/E, versus its peer average of 21.
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