Group FuM grew by 2.5% to £37.5bn in Q3. Investment management organic net inflows totalled 2.5% annualised on opening FuM vs our 3% assumption. Total net operating income grew by 7.0% yoy to £70.5m, driven by fee income growth alongside continued decline in commission income. We do not expect to make material changes to our forecasts. We reiterate our SELL recommendation with a 2100p 12m Target Price (16x FY18e PER), as margin weakness and low earnings growth weigh on the outlook.
18 Oct 2017
N+1 Singer - Rathbone Brothers - FuM +2.5% in Q3, Investment Management net inflows remain modest
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N+1 Singer - Rathbone Brothers - FuM +2.5% in Q3, Investment Management net inflows remain modest
Rathbones Group PLC (RAT:LON) | 1,612 290.2 1.1% | Mkt Cap: 1,744m
- Published:
18 Oct 2017 -
Author:
Andrew Watson -
Pages:
3
Group FuM grew by 2.5% to £37.5bn in Q3. Investment management organic net inflows totalled 2.5% annualised on opening FuM vs our 3% assumption. Total net operating income grew by 7.0% yoy to £70.5m, driven by fee income growth alongside continued decline in commission income. We do not expect to make material changes to our forecasts. We reiterate our SELL recommendation with a 2100p 12m Target Price (16x FY18e PER), as margin weakness and low earnings growth weigh on the outlook.