Broker tips: Kistos, Rahbones
By Iain Gilbert
Date: Wednesday 18 Jun 2025
(Sharecast News) - Analysts at Berenberg reiterated their 'buy' rating and 230.0p target price on energy firm Kistos after it confirmed that it and Vår Energi have made a final investment decision on the Balder Phase VI project off the coast of Norway.
Berenberg said Phase VI was a near-field development which should offer attractive returns and demonstrate the potential of the wider Balder Area to deliver long-term value.
In addition, Kistos also expects that first oil from the Balder X project, which includes the deployment of major new infrastructure, will be achieved imminently, and increase gross capacity of the area to 80,000 barrels of oil per day, from 30,000 boe/d currently.
"We expect further projects to be announced over the coming months and years, with both Kistos and Vår Energi looking to maximise utilisation of the converted Jotun floating production, storage and offloading (FPSO) vessel over the medium term," said the German bank
"We view this as a positive update confirming that first oil from the company's key growth project is imminent and highlights its plans to deliver long-term value from the area."
Bank of America initiated coverage of wealth manager Rathbones on Wednesday with a 'buy' rating and 2,250p price target, as it said the stock remains highly undervalued on around 10x 2026 estimated price-to-earnings. It noted that this is a 19% discount to the five-year average.
"We think the current valuation does not price in the transformational acquisition of IW&I, which has driven FUMA +67% and formed one of the largest UK wealth managers," the bank said. "The migration of IW&I is due to complete in H125, followed by a net flow recovery and realisation of most synergies in H225E."
Bank of America said this should drive operating margin expansion to 28.4% in 2026E, versus consensus of 27.7%.
"We further expect wealth and asset management net flows to be supported by equity market momentum, softening interest rates and reallocation from US to EU equities," it added.
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