Panmure Liberum has downgraded IntegraFin Holdings PLC (LSE:IHP), owner of the Transact investment platform, to 'hold' from 'buy', citing reduced upside potential following a strong share price performance.
Analysts noted resilient flows and a year-on-year increase in assets under administration (AUA) in the company’s full-year results, which offset the impact of pricing reductions for customers.
While pre-announced flows and revenues were in line, a 4% earnings per share (EPS) beat was attributed to better-than-expected costs and interest income on corporate cash.
However, the guidance included further pricing cuts and an unexpected £2 million office relocation expense, prompting a slight 2% reduction in PL's EPS forecasts.
Despite remaining supportive of IntegraFin’s long-term prospects, PL sees limited near-term valuation appeal at current margins and maintains a target price of 400p.
In afternoon trading, the stock was little changed at 340p.