LONDON (ShareCast) - (Sharecast News) - Analysts at Liberum upped their target price on financial services company Quilter from 159.0p to 185.0p on Tuesday on the back of the "good news" that a "substantial" cash return was in the pipeline.
Liberum said Quilter's board would likely return net surplus proceeds from the £425.0m disposal of QLA to shareholders, one way or another - with an explanation of just how it intends to do so to arrive by 11 March, when its full-year results were to be announced.

As a result, the analysts stated the company had started to rerate, as anticipated, buoyed by the good news, management's comments that the migration was going well and rising markets.

The broker also reduced the discount to its fair value estimate for the shares, using a discounted cash-flow method, cutting it from 25%, or almost £1.0bn, to £500.0m, and said it continues to believe that it will be "obvious" by the third quarter of 2020 that Quilter was a growing business - with half of profits from advice and wealth management and half from the UK's fourth-biggest adviser platform.

Liberum also noted that the news-flow on the UK platform's transformation would be key to the above.

At the broker's new price target, the stock would trade at 15.9x 2021 estimated earnings and 13.8x 2022's.

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