Lower interest rates might prove to be a benefit to the wealth platforms, suggest analysts at broker Panmure Liberum
The broker acknowledges that retained income from investors’ cash balances has been a boon to various businesses over the last two years
This tailwind will ease as rates subside, it adds, but that is already reflected in estimates says the broker while the topic in general is now much better understood and valued by the market.
“More importantly, if rates are falling we would hope that cash on deposit gets put to work in investments, the actual reason that platforms exist. “
Favourite picks among the other financial platforms remain AJ Bell PLC (LSE:AJB), given a 'buy' rating and 490p target, Quilter PLC (LSE:QLT)('buy', 170p target) and St James's Place PLC (LSE:STJ) ('buy', 1,400p target).