Quilter stock price target cut to GBP0.95 by Deutsche Bank

On Thursday, Deutsche Bank (ETR:DBKGn) analysts adjusted their outlook on Quilter Plc (QLT:LN), reducing the price target to GBP0.95 from the previous GBP1.10, while maintaining a Sell rating on the stock. The revision follows the company’s report of assets under management and administration (AuMA) at £119.6 billion, which aligned with Deutsche Bank and consensus estimates. Quilter experienced net flows of £2.2 billion, slightly surpassing expectations and indicating a robust performance similar to that recently reported by IntegraFin, which Deutsche Bank suggests may have positive implications for the sector.

Despite the in-line performance, Quilter has indicated that the AuMA has decreased by approximately 3% as of April 17, attributed to recent market movements. The company warns that if this decline persists, it could pose a challenge to future revenue and profitability. In response to these developments, Deutsche Bank has revised its earnings per share (EPS) forecasts for Quilter downward by a high single-digit percentage, reflecting the need to adjust for current market conditions.

The reduction in AuMA since March and the potential impact on Quilter’s financials prompted the analysts to reassess their expectations for the company’s performance. The updated price target and EPS estimates take into account the recent market trends that have affected Quilter’s asset levels.

Quilter’s recent financial results have been scrutinized by Deutsche Bank as part of their ongoing analysis of the investment management sector. The insights provided by the company’s performance and outlook are used to inform investors about the potential headwinds facing Quilter and similar firms in the industry.

Investors and stakeholders in Quilter Plc will be monitoring the situation closely to see how the company navigates the current market environment and whether it can mitigate the effects of reduced AuMA on its revenue and profitability. The updated guidance from Deutsche Bank serves as an indicator of the challenges Quilter may face in the near term.

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