Berenberg upgrades Quilter to 'buy'
Analysts at Berenberg upgraded Quilter from 'hold to 'buy' on Wednesday and said they "have been impressed" by the group's transformation, which they noted has driven "a material acceleration" of inflows of client assets over the past 18 months.
Berenberg thinks that Quilter has "a strong position" in the UK wealth management market, which it expects to grow in the coming years.
The German bank stated the long-term outlook for the UK wealth market was attractive, in its view, given greater pension market participation and growing structural demand for financial advice in the UK market.
Berenberg noted that in the last few years, Quilter has transitioned to become "a simpler, full-service, UK-focused wealth manager", spanning the provision of financial advice, investment management and an investment platform.
It now expects Quilter to generate strong levels of client asset inflows, given its "high-quality investment platform" and popular investment product offering.
Berenberg also increased its price target on the stock to 195p from 150p based on revised forecasts and an improved outlook for the business.
Reporting by Iain Gilbert at Sharecast.com
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