RBC initiates coverage on UK's Liontrust with 'underperform' on recovery concerns
10/01/2025 10:05
** RBC starts coverage of fund manager Liontrust Asset
Management LIO.L with "underperform" rating and 390p PT
** RBC is the only brokerage with equivalent of a "sell"
rating and current PT is the lowest among nine analysts covering
the stock - LSEG
** Brokerage's PT implies a downside of ~35.9% to its median
PT of 672p - LSEG
** Shares of LIO down 1.26% at 430p
** RBC says LIO's assets under management growth will be
below that of UK peers - Abrdn ABDN.L , Polar Capital Holdings
POLR.L and Schroders SDR.L - on lower net flows through CY24
** In October, LIO posted lower second-quarter assets under
management and advice
** "Although appearing cheap, given the now relatively
subdued flow expectations and earnings recovery, we see limited
scope for a near-term re-rating vs peers" - RBC
** However, brokerage says LIO could see better performance
compared to its peers if the UK stock market performs well or if
returns from sustainable-focused stock investments improve
** LIO shares fell 24.44% in 2024
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com))