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Canaccord Genuity has raised its rating on the asset manager to “buy” and boosted its target price to 230p. The broker thinks Brewin delivers a high cash return on invested capital and maintains a good momentum, and sees earnings and the share price rising in tandem with recovering financial markets. Canaccord also expects to see further cost savings as management aim for better margins.
Espirito Santo has a “neutral” recommendation on the investment manager and a fair value of 368p. While last week’s pre-tax profits came in above the broker’s forecasts, net management fees were below expectations, prompting a cut in Espirito’s predictions for 2013. Fee attrition will continue, the broker adds, though investments are on course to outperform benchmarks.
Nomura rates the bank a “buy” and has raised its target from 1,800p to 2,050p on the back of improving trends in StanChart’s core Asian market. While the bank is at risk of a hard economic landing in China, Nomura believes StanChart will continue to benefit from high levels of growth in the region. The broker is also upbeat about the firm’s balance sheet, which would help it weather a slowdown.