Sentiment around wealth platform AJ Bell PLC (LSE:AJB) is picking up again after a few shots across the bows for the sector from financial regulator the FCA.
Risks relating to interest income on uninvested client cash, one of the FCA’s concerns, still linger but Deutsche Bank says it is “broadly comfortable” with these overall.
The German bank expects annual growth between now and 2027 across all metrics.
Customer numbers are forecast to grow by 8% a year, platform AuA [assets under advice] by 15% per year, revenue 14% per year and diluted EPS 18% per year.
"We rate the shares as a 'Buy' (target 500p), primarily predicated on the growth we expect within our forecasts,” said the broker.
A year-end trading update is due on Thursday 17th October.