Singapore brokerage iFAST's plan to acquire a 30% stake in a financial adviser aligns with its strategy to capitalize on the wealth-management industry's growth, says DBS Group Research's Lee Keng Ling in a note.

The target company, Financial Alliance, is a leading non-insurance-owned advisory platform and would gain from industry consolidation, she says.

The brokerage also could list this business over the next few years, she adds. Meanwhile, iFAST is also making progress on its goal of having S$100 billion in assets under administration by 2030.

DBS projects the brokerage's earnings growth at 44% in 2025 and 26% in 2026.

DBS maintains its buy rating and S$12.00 target price on iFAST, which gains 0.2% to S$9.66.