Deutsche Bank has raised its price target on St James's Place PLC (LSE:STJ) from 1100p to 1200p, reiterating a Buy rating after conducting a detailed review of the wealth manager’s new charging model.
Analyst David McCann said the bank had assessed the firm’s revised fee structure, which is set to be introduced in the second half of the year, and concluded that it sits roughly at the industry average.
In other words, the new fees are neither unusually high nor particularly cheap when compared with like-for-like competitors.
Crucially, Deutsche believes this change is unlikely to alter the growth outlook for the business, noting that the previous charging structure had not been a drag on organic growth.
More broadly, the bank argues that St James’s Place continues to deliver strong overall value to clients, often outperforming peers on service and outcomes. McCann said that when judging the business on both cost and quality, SJP stacks up well.
Deutsche concludes that while cost structures matter, value for money is ultimately what drives client retention and growth. That view underpins its continued confidence in the stock, even as the company adapts to new fee rules and regulatory scrutiny.
The shares rose 1.3% to 1,077p.