On Thursday RBC downgraded Amundi shares from "outperform" to "sector perform," reducing its target price from €74 to €66, due to uncertainty surrounding how the distribution agreement will pan out with UniCredit; this is set to expire in July 2027.
According to the broker, the multitude of possible scenarios surrounding these discussions creates great uncertainty about the future results of Europe's leading asset manager.
If the contract with UniCredit is renewed on satisfactory terms, the market could react positively, the Canadian broker points out.
But if the contract were to be terminated, it is clear that the market has not yet fully priced in this risk, it insists, leading it to exercise caution ahead of the presentation of the new three-year strategic plan on November 18.
When it published its quarterly results last week, Amundi stated that its new 2028 strategic plan would take into account the uncertainty surrounding UniCredit's contribution from 2027 onwards, acknowledging that the terms of a possible renewal of its partnership with the Italian banking giant were not known at this stage.
Amundi features among the world's leading asset management firms. The group performs active management of shares, bonds and yields. It also conducts passive management of indexed funds as well as management of non-liquid assets (property assets and private debts).
At the end of 2024, Amundi had more than EUR 2,240 billion outstandings under management, spread mainly over the following customer types: institutional customers and employee savings schemes (32.7%), partner networks and third-party distributors (31.5%), and insurers (19.1%).
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