By Michele Maatouk
Date: Thursday 31 Aug 2023
LONDON (ShareCast) - (Sharecast News) - Citi trimmed its price target for Quilter on Thursday to 68p from 70p and reiterated its 'sell' rating.
The bank noted that larger-than-expected cost cuts have led to 10% consensus earnings per share upgrades since H1 results, with Quilter outperforming the UK market by around 25%.
"Yet a third major cost-cutting programme in four years may imply low confidence in the revenue outlook, which our analysis suggests is the main profit driver," it said.
"Our cost benchmarking analysis indicates that revenues, not costs, are Quilter's key issue."
Citi said that detailed margin analysis had driven its FY 2025 revenue estimate 7% below consensus, with around 30% downside to consensus EPS.