Berenberg ups Liontrust target price, keeps 'hold' rating
Berenberg increased its price target on Liontrust Asset Management shares and kept its 'hold' rating, arguing the stock is priced efficiently after a sharp rise.
Liontrust had strong organic growth in the first quarter as it registered £1bn of net inflows leaving assets under management at £34bn on 12 July. As a result, Berenberg increased its estimates for the FTSE 250 asset manager by 7-10%.
There will be a seasonal slowdown in the quiet summer months but with final Covid-19 restrictions lifted there could be a positive shift in the autumn as advisers meet clients face to face, Berenberg said. The broker increased its price target to £19 from £17. Liontrust shares dipped 1% to £20.05 at 12:35 BST.
We continue to be constructive on Liontrust's future prospects but, with the shares up by c20% over the past month, we believe the market is giving the company full credit for its growth prospects," analyst Jonathan Richards said in a note to clients. "Hence our 'hold' rating."