Miton has reported exceptionally strong H1 net inflows (£616m). This is impressive given weaker flows across UK equity funds. Positive investment performance totalled +2.6% (on opening FuM) against the backdrop of a relatively flat UK equity market. Updating our model for the FuM outturn, but leaving all other assumptions unchanged for H2, we upgrade EPS by 11% in FY18e and by 15-17% in outer years. We continue to apply a 12x ex-cash PER valuation which drives an increased 71p 12m Target Price (from 60p) and we reiterate our BUY recommendation.
