InvestAcc Group shares rose 9% on Tuesday after the company upgraded its full-year guidance, citing stronger-than-expected client demand and improved operational efficiencies.
The investment services provider now expects full-year revenue growth of 12-15%, up from its prior forecast of 8-10%, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are projected to increase 18-22%, compared with the previous guidance of 12-16%. The company attributed the upward revision to robust client activity across its wealth management and advisory divisions, as well as cost optimization measures implemented in the first half of the year.
InvestAcc Group, which operates primarily in Europe and the Middle East, reported a 14% year-over-year increase in first-half revenue to $285 million, driven by a 20% rise in assets under management (AUM) to $15.2 billion. Adjusted EBITDA for the period climbed 19% to $82 million, reflecting higher fee income and lower operating expenses.
Analysts at Jefferies maintained a 'Hold' rating on the stock but raised their price target to $18.50 from $16.00, citing the improved outlook as a key driver. The stock has gained roughly 18% year-to-date, outperforming the broader European financial services sector, which is up 11% over the same period.
The company is scheduled to release its third-quarter results on November 15, with market watchers expecting further updates on client acquisition trends and margin expansion.
