A Look at Affiliated Managers Group’s Valuation Following Strategic Partnership With Brown Brothers Harriman

Affiliated Managers Group (AMG) has formed a strategic partnership with Brown Brothers Harriman to introduce BBH’s structured and alternative credit strategies to the U.S. wealth market. This marks a meaningful step in AMG’s expansion plans.

See our latest analysis for Affiliated Managers Group.

AMG’s bold move with Brown Brothers Harriman is catching attention, especially as its 5-year total shareholder return stands at an impressive 198.26%. Momentum has been particularly strong lately, with a 90-day share price return of 15.26% and year-to-date gains above 23%, even after a recent cool-off. The stock’s multi-year track record suggests investors have been increasingly rewarding both growth and strategic execution.

If AMG’s ambitious partnership piques your interest, it may be the perfect moment to broaden your search and discover fast growing stocks with high insider ownership.

With shares still trading at a notable discount to analyst price targets and robust growth already reflected in performance, investors must consider whether there is more upside ahead or if the market has fully priced in AMG’s potential.

Most Popular Narrative: 16% Undervalued

Affiliated Managers Group closed at $230.78, while the most followed narrative places its fair value at $274.86. This gap reflects ongoing confidence in future growth and sets the stage for a deeper dive into one of the central growth catalysts highlighted by the narrative.

“Record-breaking inflows and rapid expansion in alternative assets. AMG increased alternative AUM by 20% in six months and reported its strongest organic growth quarter in 12 years. These factors position the company to benefit from persistent global demand for yield, diversification, and differentiated strategies, directly supporting top-line revenue and future net margin improvement due to higher fee structures in alternatives.”

Read the complete narrative.

Want to know the engine behind that big valuation gap? The real story hides in how surging alternatives, bold capital allocation, and future profit assumptions influence this price forecast. Click to see the full financial logic powering this undervalued call.

Result: Fair Value of $274.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent passive investing trends and heavy reliance on a few key affiliates could present challenges to AMG’s future growth and may disrupt current upside expectations.

Find out about the key risks to this Affiliated Managers Group narrative.

Build Your Own Affiliated Managers Group Narrative

If the narrative above doesn’t quite fit your outlook, you can easily dig into the numbers and put together your own perspective in just a few minutes. Do it your way.

A great starting point for your Affiliated Managers Group research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Miss out now and you could watch tomorrow’s headline stocks leap ahead without you. Use Simply Wall Street’s powerful tools to fuel your next move:

• Amplify your income with reliable payers by checking out these 19 dividend stocks with yields > 3% boasting superior yields above 3%.
• Capture breakthroughs in the race for advanced computing by exploring these 26 quantum computing stocks at the frontlines of quantum innovation.
• Capitalize on market mispricings with these 891 undervalued stocks based on cash flows that offer compelling upside based on strong underlying cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com