iFAST Corp may have failed to clinch the coveted digital wholesale bank (DWB) licence in Singapore.
But the internet-based investment product distribution platform company is still rated a “buy” with an unchanged target price of $3.96 by DBS Group Research.
This is due to the company’s expanding range of products and services, according to the brokerage.
“We continue to expect iFAST’s assets under administration (AUA) growth to outpace the industry growth even without a digital bank licence,” DBS analyst Ling Lee Keng writes in a Dec 7 note.
On Dec 4, the Monetary Authority of Singapore awarded two DWB licences to Ant Group and a consortium comprising Greenland Financial Holdings, Linklogis Hong Kong and Beijing Cooperative Equity Investment Fund Management.
The consortium led by iFAST, comprising Yillion Group and Hande Group, did not obtain the DWB licence, though it was shortlisted in June.
Despite the setback, DBS notes that iFAST is now reaping the fruits of its labour in the last few years.
The company now enjoys operating leverage from its scalable online-based business model, it adds.
DBS expects iFAST’s AUA to grow at a three-year compounded annual rate of 18%, compared to the industry’s 12%.
“The strong results in the last few quarters are testament to this shift,” says Ling.
As at 11.29 am, iFAST was up 17 cents or 6.3% at $2.86 with 3.4 million shares changed hands.
