AMDUF - Amundi: AuM Flow Momentum Combined With Deal Accretion
2024-06-22 01:08:45 ET
Summary
- Amundi offers capital optionality with new M&A or higher shareholders' remuneration.
- The company acquired Alpha Associates and partnered strategically with Victory Capital.
- Solid AuM momentum and a discrepancy in valuation now offer a buy rating opportunity.
One year after our neutral rating on Amundi (AMDUF), we decided to review our analysis, proving the pros and cons. As a reminder, the company is one of the ten global asset managers by AuM and provides services to retail and institutional clients. Amundi offers financial instruments, savings, and investment solutions across equities, fixed income, treasury, and alternatives. The company serves customers in the US, Europe, and Asia. Amundi is majority-owned by Crédit Agricole with an equity stake of 69.2% and is regulated as a bank/credit institution in France. Given our extensive EU financial coverage, Amundi's valuation looked full. This was due to:
- Deterioration in partnerships impacting AuM following UniCredit's decision to reduce Amundi financial funds;
- A comps analysis with Allianz (PIMCO), with a preference for the German insurance company at a similar P/E estimate.