CIB - Patria Investments: Stock Multiples At Historic Lows Potential 7.87% Yield

2024-05-29 08:03:33 ET

Summary

• Patria has conducted a series of acquisitions that has more than doubled its AUM over the last three years at $32 billion.
• Weak stock price performance has resulted in a -16% YTD stock decline, bringing PAX stock price and PE multiple to a previous support level.
• Given its solid product offering and reputation within LATAM, buying this asset manager at its lows makes sense, especially since the elevated dividend could serve as to cover stock drops.

Patria Investments Limited (PAX) is a global asset manager with a strong focus on alternative investments in Latin America. In 2021, the company went public, and ever since the IPO date, the stock has dropped -35%. As of this writing, the company has a market cap of around $2 billion, and in the last twelve months has generated $318.8 million in revenue and $116.6 million in net income, resulting in a reasonable TTM PE multiple based on the ones exhibited in the Asset Management and Custody Banks industry ....

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