Brewin Dolphin PLC (LON:BRW) suffered a share price downgrade by its house broker even though the wealth manager reported another year of strong fund inflows.
Liberum lowered to its target to 394p from 481p, even though it was impressed by the 6.8% rise in new money coming in during the year to September.
READ: Brewin Dolphin posts higher profits as inflows continue
The house also reduced its forecasts in 2019 and 2020 by 3.5% and 2.5% respectively to reflect ‘larger client growth leading to larger clients move up pricing tiers’.
Shore Capital, meanwhile, maintained a price target of 420p and kept Brewin Dolphin as its top pick in the wealth management sub-sector.
One concern, though, said Shore was Brewin's intent to undertake a major IT upgrade of custody ansd settlement service over the next two years, which might “run a mild chill down the spine” of investors.
The last major IT project at Brewin ended with a £34mln write-off being taken in 2014 as the project was abandoned David Nicol when he took over as chief executive.
Brewin shares eased 4% to 320p.