Solid fundamentals underpinning a recovery at St James's Place, says Berenberg
By Michele Maatouk
Date: Tuesday 13 May 2025
(Sharecast News) - Berenberg hiked its price target on St James's Place on Tuesday to 1,300p from 850p to reflect the high level of visibility that it has on the company's 2030 targets and its conviction that the group can capitalise on the structural opportunity.
The bank said the price target values SJP on 10x its FY29 estimated earnings per share.
Berenberg said that solid fundamentals are underpinning a recovery.
"St. James's Place (SJP) has recovered its poise, in our view," it said. "Annualised Q125 net inflows of 3.8% marked an acceleration from 3.3% in Q424 and the low of 1.7% a year ago.
"Despite the challenging regulatory and market backdrop, the underlying business has remained fundamentally sound."
It also said that higher-for-longer interest rates could continue to be a hurdle to clients committing to new investment, while a sharper focus on productivity may initially weigh on adviser and client numbers.
"However, management's 2030 target to double the underlying cash result only assumes net inflows of 2-3% per year.
"This is not only underpinned by the structural opportunity, but we think that there is upside to this if investment helps SJP to capture a larger wallet share."
Berenberg maintained its 'buy' rating on the stock.
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10 Lower Thames St,
London EC3R 6EN