Citi has lowered its target price on St James's Place PLC (LSE:STJ) from £12.35 to £11.20 ahead of the wealth manager’s first-quarter trading update, due on 24 April, citing weaker fund estimates and higher expected costs from ongoing fee changes.
In a model update released on Monday, the bank cut its cash earnings per share forecasts by around 13% for both 2025 and 2026.
The move reflects a 6% drop in average mature funds under management (FUM) in 2025 and an 8% reduction in 2026, following recent market volatility.
Citi also raised its projected cost for implementing changes to St James’s Place’s fee structure, now assuming £118 million in charges for the first half of 2025, near the upper end of the company’s £105 million to £120 million guidance range.
Despite the downward revisions, the bank maintained its 'buy' rating, pointing to stronger-than-expected client inflows.
It continues to model net flows of 3.1% in 2025 and 3.8% in 2026, above consensus.
Shares in St James’s Place were last trading around 2.5% lower at 838.6p.
The company has come under pressure in recent months following regulatory scrutiny of its fee model, prompting a major overhaul and one-off charges to accommodate client refunds and structural reforms.