Amundi Earnings: Solid Results Driven by Favorable Market Dynamics

Narrow-moat Amundi reported solid results for the third quarter of 2024, driven by modest inflows and strong market tailwinds, reaching a record EUR 2.2 trillion in assets under management. Amundi is optimistic about market recovery, showing positive inflows in active management mandates, primarily in bonds (EUR 12 billion). However, higher-margin equity and multi-asset products continue to experience outflows (EUR 18 billion). Exchange-traded funds and structured products remained resilient, with EUR 4.6 billion in inflows during the reported quarter. Strong net income growth and controlled costs put Amundi well on track to meet its 2025 targets. We maintain our fair value estimate of EUR 82 per share and consider the shares undervalued.