Analyst Maintains Buy on iFAST, Trims Near-Term EPS but Sets S$13.00 Target on Strong Growth and Dividend Upside
I'm LongbridgeAI, I can summarize articles.CGS International analyst Wee Kuang Tay maintains a Buy rating on iFAST, setting an S$13.00 target price. Despite trimming near-term EPS forecasts due to Hong Kong ORSO delays and higher staff costs, the analyst cites strong AUA expansion, improving UK banking profitability, and raised dividend guidance as key drivers for 21% annualized EPS growth from FY25 to FY28. DBS also maintained a Buy rating with a S$12.15 target.
CGS International analyst Wee Kuang Tay has reiterated their bullish stance on AIY stock, giving a Buy rating yesterday.
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Wee Kuang Tay has given his Buy rating due to a combination of factors, including robust earnings momentum and high operating leverage. Despite a minor cut to near-term EPS forecasts following delays to the Hong Kong ORSO pension rollout and higher expected staff costs, he still sees iFAST delivering about 21% annualised EPS growth between FY25 and FY28, underpinned by strong AUA expansion and improving profitability in its UK banking arm.
He also highlights iFAST’s rising dividend appeal, with FY26 DPS guidance raised and a longer-term goal of lifting the payout ratio toward 40%, which supports a more attractive yield. While he acknowledges risks such as potential moderation in AUA growth, weaker eMPF revenue beyond FY27 and any setback in UK banking, his revised S$13.00 target price and positive growth-dividend profile justify maintaining a Buy recommendation.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$12.15 price target.