Recent data from the Finnish mutual funds market confirms a positive shift in demand during H2 2020 which should impact positively on EAB's fees from UCITS funds in H2 2020 and 2021 after a COVID-burdened H1 2020. Increased capital inflows could also have a positive impact on other sources of revenue such as brokerage fees and full-mandate wealth management. The market tailwinds together with declining fixed costs should help the company in its profitability turnaround over the coming years.
We see any new Alternative Investments funds as potential next triggers for the share and keep our fair value range unchanged at EUR 2.2-2.7 based on the median of four valuation methods.
Marketing material commissioned by EAB Group Oyj.
Source: Finwire News.