ABC arbitrage: the stock market applauds the annual business review

(CercleFinance.com) - ABC Arbitrage shares gained over 5% on the Paris Bourse on Tuesday, in the wake of an annual activity update welcomed by analysts.


In a press release, the alternative asset management company reports that its activity in 2024 has reached a level 'significantly higher' than that of 2023, with an estimated increase of close to 30% year-on-year.

At the time of its first-half publication, ABC had mentioned a level of activity simply 'in line' with that of the 2023 financial year.

To date, assets under management stand at 265 million euros, compared with 313 million on September 1, 2024, a decrease due to the end of a management mandate exercised on behalf of a North American client.

This outflow, which occurred at the end of the year, will have a marginal impact, i.e. less than 0.1 million euros, on the results for fiscal 2024, the Group states in a press release.

ABC also warns that an exceptional event will have a positive effect on its annual accounts, since a tax provision of 5.7 million euros, which had been set aside in 2021, has now been extinguished.

This extinction will lead to an exceptional accounting reversal, which will directly improve net income for the 2024 financial year.

In a reaction note, analysts at TP ICAP Midcap - who have a buy recommendation and a price target of six euros - refer to a "positive trading update".

ABC Arbitrage enjoyed very good business momentum at the end of 2024, enabling it to anticipate a landing of 2024 sales well above those of 2023", notes the brokerage firm.

TP ICAP thus raises its sales and net income forecasts for 2024 by 15% and 41% respectively.

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