360 ONE WAM shares have 50% upside potential, Citi initiates 90-day positive watch

Global brokerage firm Citi has placed a 90-day "positive catalyst" call on 360 One WAM (formerly IIFL Wealth Management), citing expected upside surprises in net flows during the second half of the fiscal year. The firm has set a price target of ₹1,615 per share for the wealth and asset manager, implying an upside potential of 50% from Tuesday's closing levels.

Citi's optimistic view is largely predicated on an anticipated sharp recovery in net flows, which are crucial for the company's growth trajectory.

The brokerage noted that while core gross flows into both the wealth management and asset management verticals have remained strong over the last 2-3 quarters, the net flow figures were previously suppressed. The earlier weakness in net flows was attributed primarily to attrition-led outflows and planned redemptions in private equity.

Citi also highlights that the September quarter witnessed "greenshoots" in net flows, suggesting that the worst is over. The firm believes that the third quarter and the entire second half are likely to "surprise on the upside" as flow momentum strengthens.

Additionally, Carry income and transactional revenue are expected to remain robust, providing additional support to the company's overall top line, Citi wrote in its note.

At 28 times financial year 2027 estimated price to earnings, Citi finds the valuations for 360 ONE WAM to be favourable and encouraging.

12 analysts have coverage on 360 ONE WAM, out of which, 11 have a "buy" rating on the stock and one has a "sell" rating.

Shares of 360 ONE WAM are currently trading 2% higher at ₹1,099.4. The stock has declined 7% so far in the last one month and is down 14% so far for 2025.