On Monday, Piper Sandler, a financial services firm, increased its price target on shares of GCM Grosvenor Inc. (NASDAQ: GCMG) to $10.50, up from the previous $10.00, while maintaining a Neutral rating on the stock.
This adjustment followed the company's first-quarter results for 2024, which prompted the firm to revise its earnings per share (EPS) estimates for 2024 and 2025.
GCM Grosvenor reported quarterly results that aligned with Piper Sandler's and other analysts' expectations. The company's fee-related earnings per share exceeded estimates slightly. The firm noted that GCM Grosvenor had a strong fundraising period, marking the best performance in the last six quarters.
The company reaffirmed its projection for double-digit growth in private markets management fees for 2024. Additionally, GCM Grosvenor is optimistic about its ability to double its 2023 fee-related earnings by the end of 2028.
Piper Sandler's new price target of $10.50 is based on approximately 15 times the unchanged 2024 distributable earnings estimate. The adjustment reflects the updated EPS forecasts, which have been increased to $0.70 for 2024 and $0.81 for 2025, up from the prior estimates of $0.69 and $0.77 respectively.
InvestingPro Insights
In alignment with Piper Sandler's revised outlook on GCM Grosvenor, current InvestingPro data provides a broader context for investors considering the firm's potential. With a market capitalization of $1.88 billion and recent revenue growth of 8.1% in Q1 2023, GCM Grosvenor shows a notable expansion in its financial activities. The company's gross profit margin stands at 18.25% for the same period, indicating its profitability with respect to revenue generation.
Among the InvestingPro Tips, two particularly stand out in relation to the article. First, GCM Grosvenor has raised its dividend for three consecutive years, culminating in a dividend yield of 4.42% as of the last recorded date, which may appeal to income-focused investors. Additionally, the company has been trading near its 52-week high with a price 97.65% of this peak, reflecting a strong performance in the stock market over the past year with a one-year total return of 48.03%.
Investors looking for more in-depth analysis on GCM Grosvenor can find additional insights on InvestingPro, including a fair value estimate of $11.05, which is slightly higher than Piper Sandler's target. For those interested in accessing these valuable InvestingPro Tips and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 8 more insightful tips available on InvestingPro for GCM Grosvenor, which could further guide investment decisions.
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