Deutsche Bank has downgraded Quilter PLC (LSE:QLT) to 'sell' from 'hold' on valuation grounds and unchanged fundamentals.
The target price remains 95p - a discount to the current market valuation of 115.4p, down 2.3% on the day.
DB has revised forecasts to the end of June and previewed the upcoming results from the wealth manager set for August 7.
It expects flow trends to remain similar to the first quarter and anticipates the focus to be on updates regarding the ongoing advice issue.
However, due to the complexity of the situation, substantial updates are unlikely, DB reckons.
This lack of progress could disappoint the market. Additionally, due to the uncertainty surrounding the group's capital impact, the interim dividend is expected to be flat, which is below current consensus expectations, the bank said in a short note.