logo-loader
viewQuilter PLC

Citi initiates Quilter at ‘buy’, downgrades Hargreaves to ‘sell’ as it revisits coverage of UK wealth managers

The bank said it was attracted to “the long term structural growth and earnings quality” of the sector, however, they were selective due to “near term headwinds” facing some of the firms

Quilter PLC - Citi initiates Quilter at ‘buy’, downgrades Hargreaves to ‘sell’ as it revisits coverage of UK wealth managers

Analysts at Citi have initiated Quilter PLC (LON:QLT) with a ‘buy’ rating but has also downgraded peer Hargreaves Lansdown PLC (LON:HL.) to ‘sell’ from ‘neutral’ as they reassessed their views on the UK’s wealth managers.

In a note on Tuesday, the bank said it was attracted to “the long term structural growth and earnings quality” of the sector, however, they were selective due to “near term headwinds”.

Citi said it preferred Quilter over fellow wealth manager St James’s Place (LON:STJ), which itself was preferred over Hargreaves.

“We prefer [Quilter’s] risk-reward…given upside potential from platform conversion/affinity growth and near-term buyback support”, the bank said, adding that they saw a “lack of near-term catalysts” for Hargreaves and expected a “weaker” 2021 financial year from the group, justifying the ‘sell’ rating.  

Shares in Quilter were down 1.5% at 142.3p in lunchtime trading, while Hargreaves shares fell 2.1% to 1,587p.

Quick facts: Quilter PLC

Price: 149.6 GBX

LSE:QLT
Market: LSE
Market Cap: £2.75 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Britvic PLC sees acceleration in at-home channel sales lead by Pepsi-MAX in...

Britvic PLC (OTCQX:BTVCF) (LON:BVIC) Director of Investor Relations Stephen Nightingale tells Proactive the manufacturer of soft drinks saw an increase at-home channel sales with its slew of trusted soft drinks, despite a months-wide lockdown in the UK. Nightingale says its carbonates...

8 hours, 32 minutes ago

2 min read