Fund manager Schroders PLC (LON:SDR) was a faller today after broker RBC Capital cut its stance on the FTSE 100-listed firm to ‘sector perform’ from ‘outperform’.
RBC’s analysts also reduced their target price for Schroders to 3,300p from 3,400p having cut their earnings per share estimates by 3% for 2107 and by 2% for 2018 after a “mark-to-market” exercise following 2016 results.
In a note to clients, they said: “We maintain that Schroders offers diversification, a best-in-class balance sheet and an accomplished management team.
“However, after a period of outperformance, the upside potential is more limited and no longer warrants a more positive thesis”.
In late morning trading, Schroders shares were down around 1%, or 30p at 3,099p.