Canaccord Genuity lowers target price on Mattioli Woods

Analysts at Canaccord Genuity lowered their target price on diversified financials outfit Mattioli Woods from 895.0p to 850.0p on Friday to reflect market movements following the group's annual general meeting.

Canaccord Genuity said Mattioli Woods' AGM statement provided reassurance with respect to ongoing organic revenue growth in its pensions and advice business.

In line with what the analysts see elsewhere in the wealth and asset management sector, market volatility sas, however, said to be having an impact on assets under management growth.

"Given this update, we believe it prudent to review assumptions and have consequently made some slight adjustments, resulting in single-digit EPS cuts across our forecast horizon," said Canaccord.

"Our valuation methodology remains unchanged. We retain CY23 as the target date and apply a 20% premium to the long-run, one-year forward sub-sector PE of 14.5x, thus a target multiple of 17.4x. We believe this is justified based on the proven strong performance of MTW across various cycles, relatively defensive revenue model and attractive business and distribution mix. Our new TP is 850p (prev: 895p), reflecting our reduced EPS forecasts. The implied upside is 44%."

Reporting by Iain Gilbert at Sharecast.com