Polar Capital Holdings PLC (AIM:POLR), the specialist fund manager, drew bullish notes from Peel Hunt and Panmure Liberum after full-year results, with its shares rising 7% and both brokers arguing the market is undervaluing its earnings momentum.
The two houses split sharply on how far the shares can run, with Panmure Liberum lifting its target price to 1220p from 800p while Peel Hunt held at 700p (current price 958p).
Both retained 'buy' recommendations.
The results confirmed a known jump in assets under management, from £21.4 billion to £30.6 billion over the year to March 2026, driven by strong markets and net inflows.
Peel Hunt noted core profits rose 11% to £62.8 million, with performance fee profits of £16.1 million in line with company guidance.
A second interim dividend of 32p took the full-year payment to 46p.
The forward momentum is where both brokers focused their conviction.
Assets had climbed a further 46% to £44.7 billion by 19 June, including £2.3 billion of net inflows and an £11.8 billion market and performance benefit.
Panmure attributed the acceleration into the new financial year to technology and artificial intelligence strategies, describing a sharp inflexion in flows.
It framed Polar as a premium player whose share price fails to reflect its earnings momentum.
A new capital returns policy underpinned both notes, committing at least 50% of adjusted core profits to ordinary dividends, with performance fees and surplus capital available for buybacks or special dividends.
The company signalled the current-year dividend should not fall below 46p.
Peel argued the recent share price strength had only broadly matched estimated earnings growth, given strong markets, flows and the operating leverage in the business.
On refreshed estimates it put the shares at around nine times FY27 earnings, a multiple it considers far too low.
