- St James's Place
- 13 May 2025 14:34:34
Source: Sharecast
The bank said the price target values SJP on 10x its FY29 estimated earnings per share.
Berenberg said that solid fundamentals are underpinning a recovery.
"St. James’s Place (SJP) has recovered its poise, in our view," it said. "Annualised Q125 net inflows of 3.8% marked an acceleration from 3.3% in Q424 and the low of 1.7% a year ago.
"Despite the challenging regulatory and market backdrop, the underlying business has remained fundamentally sound."
It also said that higher-for-longer interest rates could continue to be a hurdle to clients committing to new investment, while a sharper focus on productivity may initially weigh on adviser and client numbers.
"However, management’s 2030 target to double the underlying cash result only assumes net inflows of 2-3% per year.
"This is not only underpinned by the structural opportunity, but we think that there is upside to this if investment helps SJP to capture a larger wallet share."
Berenberg maintained its ‘buy’ rating on the stock.