Assessing Affiliated Managers Group’s Valuation After Its $425 Million Senior Notes Offering

Affiliated Managers Group (AMG) just tapped the bond market, issuing 5.50% senior unsecured notes due 2036 to raise roughly $425 million. That financing move is shaping the current conversation around the stock.

See our latest analysis for Affiliated Managers Group.

The bond deal comes on the heels of management’s appearance at a major financial services conference, and investors seem to like the story, with a roughly 48% year to date share price return and a robust five year total shareholder return suggesting that momentum is still building rather than fading.

If this kind of capital markets activity has your attention, it could be a good moment to broaden your watchlist and explore fast growing stocks with high insider ownership.

But with AMG trading near record highs, solid earnings growth, and a modest discount to analyst targets, is this still an underappreciated compounder, or has the market already priced in the next leg of growth?

Most Popular Narrative: 9.8% Undervalued

With Affiliated Managers Group last closing at $277.41 versus a narrative fair value near $307.71, the story leans toward upside built on compounding fundamentals.

The analysts have a consensus price target of $253.857 for Affiliated Managers Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $331.0, and the most bearish reporting a price target of just $195.0.

Read the complete narrative.

Curious why this narrative pushes value above the analyst consensus band? Earnings, margins, and future multiples all shift in unusual ways. Want the full playbook?

Result: Fair Value of $307.71 (UNDERVALUED)

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

However, sustained fee pressure or a stumble at key affiliates like Pantheon or AQR could quickly turn today’s perceived undervaluation into justified skepticism.

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

Build Your Own Affiliated Managers Group Narrative

If this perspective does not quite match your own, or you would rather review the numbers yourself, you can build a tailored view in minutes, Do it your way.

A great starting point for your Affiliated Managers Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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