Berenberg starts coverage of Mortgage Advice Bureau at 'buy'
By Michele Maatouk
Date: Tuesday 25 Feb 2025
(Sharecast News) - Berenberg initiated coverage of Mortgage Advice Bureau on Tuesday with a 'buy' rating and 1,150p price target.
It said the company has grown into one of the UK's leading platforms for mortgage intermediaries, with links to close to 200 appointed representative (AR) firms and approximately 2,000 advisers.
"The company has significantly outperformed broader mortgage market trends over the past decade and is well positioned to benefit as underlying mortgage market volumes recover through FY25-FY26," Berenberg said.
"In addition, a notable focus on improving the company's technological capabilities should help to improve the competitive position of the firm and its profitability dynamics."
The bank also said that MAB's balance sheet has been in a strong position since listing in 2014 and it expects it to remain so.
"Management is targeting cash conversion above 100% in the medium term, supported by: a low level of capex; a negative working capital cycle; and a low level of exceptional items and other distorting factors," it said.
"We expect selective M&A to feature in the medium-term strategic story."
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