RBC Capital starts PensionBee at 'sector perform'
By Michele Maatouk
Date: Thursday 02 Oct 2025
(Sharecast News) - RBC Capital Markets initiated coverage of PensionBee on Thursday with a 'sector perform' rating and 170p price target.
"We believe PBEE's simple and differentiated proposition is an ideal solution to the proliferation of unconsolidated UK DC pension pots," it said.
RBC said it sees "a very compelling story" for those able to take a long-term view of PensionBee's structural growth runway.
"However, while a ramp-up in marketing expenses should bring long-term benefits, we expect a more muted near-term uplift, and expect it to mean minimal adjusted EBITDA improvement on a three-year view," it said. "Given we don't see this fully reflected within consensus, our excitement is for now constrained."
The bank said it sees the stock's valuation of 7x CY26E EV/sales as fair versus wealth management and investment platform peers, "balancing the group's high-growth trajectory and scalability with its current non-profitability".
The bank said it will continue to monitor for signs of improving operational momentum to help move the shares, which have been flat on a LTM view.
At 0950 BST, the shares were up 2.8% at 164.50p.
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