UBS rates the asset manager “neutral” and has trimmed its target price by 10p to 145p following Wedensday’s first half results figures. The broker has also cut its earnings forecast for the year by six per cent and now expects modest outflows from the group’s retail segment. UBS also sees signs that integration with Gartmore is going well, with management indicating that the firm is out of the danger zone in terms of outflows linked to the merger.
Citigroup rates the insurance vehicle “buy” with a target price of 367p. The broker reckons the group is switching gears into an acquisitions phase, following moves to exit some of its UK businesses. Citi estimates that it shares could soar to 414p once the exit plan is complete, based on recent transaction multiples, and notes that Resolution’s share price is more resilient than some peers thanks to a low asset gearing.
Brewin Dolphin rates the property group “buy” with a target price of 505p. Brewin expects the firm to report a 24 per cent uplift in profitability in its interim results next Tuesday, though completions are expected to be 4.9 per cent lower than last year. Brewin expects a pre-tax profit of £120.2m for the year, and adds that Persimmon’s 32 per cent discount to its net asset value gives the shares plenty of space to rise.