DBS Group Research’s Ling Kee Leng has upgraded her target price on iFAST Corp from $3.96 to $6.40, on expectations that the financial services firm can win over more assets under administration in efficient manner.

“We maintain our positive view on iFAST despite the recent stellar share price performance, which we believe, was mainly driven by the anticipation of the contract win for the Hong Kong pension fund project; the solid AUA growth for FY2020, and the digitalisation trend accelerated by COVID-19,” writes Ling in her Jan 28 note.

Led by Lim Chung Chun, the firm has built a highly scalable business model coupled with a growing and deepening range of products and services.

SEE: iFAST Corp's AUA grows 44.5% y-o-y to record $14.45 bil

“iFAST is well poised to capture more market share in Singapore,” adds Ling, noting that even with $128 billion in AUM, this volume is just around 10% of the total pool of collective investment funds in Singapore. 

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iFAST’s AUA, which grew at a 2-year CAGR of 34% for FY2018 to FY2020, has outpaced the industry’s 10% growth in FY2017 to FY2019.

“With the expanding range of products and services, coupled with the boost from COVID-19 that helped to accelerate the rate of digital adoption, we expect AUA to grow by 30% in FY2021 and 20% in FY2022,” notes Ling.

As at Jan 29, iFAST shares were trading at $5.25, up 2.7%.