To The Moon

📉 $IFAST(AIY.SI)$ shares have been trading near the range of its 52-week low of $8.48 since July, with the stock trading 7.4% lower year-to-date (YTD), underperforming the Straits Times Index’s +23% YTD gains and the MSCI Financials’ +40% YTD surge

↕The divergence began after its Jan 2026 peak of $11.06 and has persisted through multiple strong earnings prints, which Bloomberg AskB infers as the market re-rating the stock lower on valuation, rather than fundamentals

Through the share price fall since Jan, iFAST’s forward price-earnings (P/E) has compressed from around 24x to its current 20.6x, which is a 23% premium to the MSCI Financial Index’s 16.7x as of 2 Sep

📢Most recently in July, iFAST delivered another set of solid earnings where net profit grew 35% to $29.8 million and revenue jumped 38% as assets under administration reached a record $36.1 billion at end-June

iFAST also announced that they will gradually raise their dividend payout ratio from 25% to 40%

So what do research analysts think of iFAST shares at this point?

We share Macquarie Research's (MQ) latest report on iFAST published yesterday, where they reiterated their Outperform rating and12-month price target of $11.10

Read more for the full article to understand why, as well as important disclaimers:

Key points

• IFAST's top-line growth remains healthy driven by consistent wealth asset inflows and fee rates. Where investors want to see improvement is on costs.

• Peak headcount for the Hong Kong e-Pension segment passed in 2Q26. Temporary 1-year contract labour should start to decrease from 4Q26e.

• IFAST has sold multi-year growth, driven by clear wealth-asset targets. We have an Outperform rating and S$11.10 price target

Operating leverage expected from 2027 onwards. iFAST is confident total headcount peaked in mid-2026 and expects lower headcount by 2028, mitigating expenses growth. The company took on temporary labour in 4Q25-1Q26 to complete onboarding tasks relating to its Hong Kong e-Pension contract. While not anticipating significant workforce reductions, the company expects margin expansion from 2027 as scale benefits emerge.

E-pension opportunity continues to scale. All trustee onboarding has been completed for the e-pension (Hong Kong) platform. IFAST has already begun managing Macau e-Pension Asset under Administration (AUA) of around S$70 million. The company expects further growth going forward as private sector (ORSO) plans come onboard (MQ is forecasting first ORSO contributions from 4Q26).

S$100 billion AUA ambition by 2030. IFAST's 3-year vision is to grow Group AUA to S$100 billion by 2030 from around S$36 billion currently. MQ expects Singapore to remain the key growth engine, contributing 60-70% of Group AUA despite perceptions that the domestic market is mature. All major IT systems are built internally, including the iFAST Global Bank core banking system that was developed and deployed within 12 months

Earnings change: MQ makes no changes. MQ recently reviewed their earnings following 2Q26 earnings

Valuation: MQ maintains their Sum-of-the-Parts based 12 month price target of S$11.10 target price. MQ applied a 27x P/E for the core wealth platform.

Catalysts: Improved EBIT margins from 4Q26e, MQ expects, alongside sustained inflows driving Assets Under Administration.

Note:Macquarie Research is independent from the Warrants business, what the Macquarie Warrants desks quote from Macquarie Research may not reflect the complete analysis of Macquarie Research on the relevant company over time.

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Investors interested in gaining a leveraged exposure to JM shares may wish to consider Macquarie’s only iFAST call warrant $iFast MB eCW261229(FSZW.SI)$ that was newly listed on 20 July 2026.Costing SGD 0.027 this morning as iFAST shares trade at $8.82, FSZW has fallen 48.1% since its first listing date on 20 Jul given iFAST’s 6% drop.

Conversely, should iFAST shares rebound from here, investors can expect FSZW to produce a magnified gain.To simulate the performance of the warrant based on your short-term view of iFAST shares, investors can use the Exposure Simulator: https://warrants.com.sg/tools/exposuresimulator/FSZW

Warrants can be traded on your brokerage account, just like shares, and come with no margin call risk. There is no iFAST put warrant available.

For further warrant queries, you can ring us at 6601 0289 or drop us an email at info@warrants.com.sg