Source: Sharecast
Berenberg noted that the study has attracted significant press coverage in recent months and said several investors had flagged concerns over the potential regulatory risk.
In its initial findings, however, the FCA announced it will not pursue any industry action or implement a ban on APR fees, something Berenberg sees as "a clear positive" for Admiral, given that its market-leading position had put it under the most scrutiny.
"We maintain our view that the final review outcome, expected by year-end, will not have an impact on earnings," said the German bank, which reiterated its 'buy' rating on the stock.
"Our valuation implies a 2026E P/E of 16.0x, close to Admiral's historical five-year average. The shares currently trade on 14.0x 2026E P/E, a 17.5% discount to Admiral's five-year average."
Reporting by Iain Gilbert at Sharecast.com