Shares in Mortgage Advice Bureau (LSE: MAB1) dipped after Deutsche Bank cut its rating from 'buy' to 'hold', citing a strategic shift in its business model.
Its analysts noted that the firm is moving towards a directly employed adviser structure as growth in its capital-light, appointed representative model slows. Future expansion will rely more on productivity gains and acquisitions, requiring greater investment, funded by a dividend rebasing.
While Deutsche Bank raised its 2025 earnings forecasts due to changes in tech cost accounting, it maintained free cash flow projections. Despite keeping its 900p price target, the bank sees limited further upside after the stock’s 40% rally this year.
In early afternoon trading, the stock was off 3.6% at 866p.