-- RBC Capital Markets initiated coverage of Fiera Capital Corp. (FSZ.TO) with a $6 price target and Sector Perform rating.
Analyst Bart Dziarski said the Montreal-based asset management company's 3-year strategic plan under new CEO Maxime Menard "focused on specialized distribution, improving performance, growing Private Markets, streamlining costs, and capital allocation is in its early days which presents execution risk."
"75% of FCF earmarked for de-leveraging & NCIB constrains investing for growth," Dziarski said in a note to clients.
"We have a neutral view of Fiera's Private Markets business given each strategy is sub-scale and are cautious on Fiera's Public Markets business given persistent outflows and recent performance," the analyst said.