- AJ Bell
- 29 July 2025 11:26:37
Source: Sharecast
Berenberg said net flows into AJ Bell continued to "remain strong" in Q325, coming in ahead of consensus expectations. Coupled with a strong period for markets, Berenberg noted that this meant AJ Bell's assets under administration had risen by 6% quarter-on-quarter and 15% year-on-year.
The German bank noted that AJ Bell's management highlighted that Q325 was a record quarter for net flows, with the business benefiting from investment in its brand and propositions.
"We increase our forecast EPS by c15% for FY25 and c11% for outer years. This is driven by the strong market performance in Q3, increases to our flow expectations in the D2C channel, and higher transactional-linked revenue given market volatility; partially offset by higher operational, technology and marketing costs," said Berenberg, which reiterated its 'hold' rating on the stock.
Berenberg added that AJ Bell currently trades on a roughly 22x forward price-to-earnings ratio.
Reporting by Iain Gilbert at Sharecast.com