Deutsche Bank has repeated a ‘Buy’ rating on AJ Bell PLC (LSE:AJB) ahead of the British financial services and stockbroking firm's fourth-quarter trading update, expected later this month.
The German bank raised its price target to 625p from 600p, implying material upside from the last closing price of 510p.
DB acknowledged the traditionally quieter summer quarter but said it expects a solid performance, noting continued strength in the direct-to-consumer (D2C) segment and a supportive market backdrop.
Momentum was strong heading into the quarter, and Deutsche Bank believes higher market levels and investor sentiment, partly driven by fear of missing out (FOMO), likely supported asset growth.
Deutsche Bank also highlighted valuation, describing AJ Bell as a “growth-at-a-reasonable-price” opportunity.
AJ Bell is slated to release its trading update on 23 October.