Markets have recovered since the recent low, but we trim our forecasts by 4-5% as there was a shortfall in revenue from a lower than expected Q2 FuM at the March fee date. We assume that markets remain stable for another 3 weeks until the next fee invoice date, however, even with FuM likely back on track at the end of Q3, this will not make up for lost ground in H1. We revise our target price to 375p (from 394p) still using a 17x FY19e PER and move to HOLD (from BUY) in the absence of fresh cata ....
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Markets recover but Q2 prompts 5% EPS reduction
- Published:
12 Jun 2018 -
Author:
Andrew Watson -
Pages:
3
Markets have recovered since the recent low, but we trim our forecasts by 4-5% as there was a shortfall in revenue from a lower than expected Q2 FuM at the March fee date. We assume that markets remain stable for another 3 weeks until the next fee invoice date, however, even with FuM likely back on track at the end of Q3, this will not make up for lost ground in H1. We revise our target price to 375p (from 394p) still using a 17x FY19e PER and move to HOLD (from BUY) in the absence of fresh cata ....