AMG: Ongoing Buybacks Will Drive Future Upside Potential

Analysts have modestly increased their price target on Affiliated Managers Group to approximately $308 per share, reflecting slightly higher long term discount rate and valuation multiple assumptions. This suggests a marginally more favorable risk reward profile despite unchanged core fundamentals.

What's in the News

• Completed a significant share repurchase tranche between July 1 and September 30, 2025, buying back 334,572 shares, or 1.18 percent of shares outstanding, for approximately $76.97 million under its ongoing buyback program (Key Developments).
• Since launching the buyback on July 29, 2024, has cumulatively repurchased 2,048,530 shares, representing about 7.02 percent of shares outstanding, for a total of roughly $370.28 million, indicating an ongoing focus on capital return to shareholders (Key Developments).
• Entered a strategic collaboration with Brown Brothers Harriman to expand BBH's structured and alternative credit investment strategies into the U.S. wealth marketplace through AMG's distribution and product development capabilities (Key Developments).
• Formed and invested in BBH Credit Partners, a new BBH subsidiary housing its taxable fixed income and structured credit business, with AMG providing seed capital and taking a minority stake to support a pipeline of new structured and alternative credit products (Key Developments).
• Plans to jointly launch a series of structured and alternative credit solutions for U.S. wealth clients and advisors, leveraging BBH's approximately $55 billion taxable fixed income franchise and AMG's distribution network to broaden BBH Credit Partners' reach beyond its institutional investor base (Key Developments).

Valuation Changes

• The Fair Value Estimate remains unchanged at approximately $307.71 per share, indicating no material revision to intrinsic value assumptions.
• The Discount Rate has risen slightly from about 8.93 percent to approximately 8.98 percent, reflecting a modestly higher required return.
• The Revenue Growth Forecast is essentially unchanged, edging up marginally from about 5.47 percent to roughly 5.47 percent on an annualized basis.
• The Net Profit Margin Assumption remains stable, increasing only fractionally from approximately 28.47 percent to about 28.47 percent.
• The Future P/E Multiple has risen slightly from about 13.99x to roughly 14.01x, implying a modestly higher valuation applied to projected earnings.