Elanor Investors Group (ENN)

Initiation of Coverage: Growth Focused Property Fund Manager

Core Property has initiated coverage of Elanor Investors Group (ASX: ENN) with a BUY recommendation and a price target of $2.03 per security.

Elanor Investors Group is a property fund manager which focusses on targetting high quality investment returns for capital investors and securityholders. Since listing on the ASX in 2014 with $173M of assets under management (AUM), ENN has grown subtantially to $6.2 billion of AUM.

The acquisition of the real estate funds management business of Challenger (ASX: CGF) in July 2023 is expected to deliver strong earnings growth in FY24 through additional management fees from $3.2 billion of AUM.

At current price levels, we consider the market has not fully priced in the growth from the Challenger acquisition, as well as ENN's growth potential in the current economic climate.