Source: Sharecast
RBC Capital said it had made "minor reductions" to net flow forecasts for the 2026 trading year, which led to "marginal" earnings per share reductions across its forecast period.
The Canadian bank updated its forecast funds under management and administration estimates, trimming its net flow forecasts for FY26, meaning "a fractionally lower" FUMA across its forecast period.
"Our expense growth assumptions are unchanged, meaning a net effect of EPS reductions of -1%/-2%/1% across FY26/27/28," said RBC, which reiterated its 'sector perform' rating on the stock.
"Even after assuming an inflection to positive net flows, we still expect BRK's EPS growth to be at the lower end of UK wealth and platform peers, owing to the group's higher exposure to the lower-growth BPS market."
RBC said Brooks Macdonald currently trades on CY26e price-to-earnings ratio of 12x, a premium to its closest peer, Rathbones, despite having a shallower earnings growth trajectory.
As a result, RBC said it sees better value elsewhere in the UK wealth sector.
Reporting by Iain Gilbert at Sharecast.com