STOCKBROKER and wealth manager Brewin Dolphin announced an 11.5 per cent rise in first quarter income to £56.9m yesterday, slightly below market expectations.
The Smithfield-based investment house saw a year-on-year rise of 5.9 per cent in funds under management for the three months to the end of December, however. The results pushed Brewin Dolphin shares up 0.7 per cent to close at 137p.
Fees from investment management rose 30 per cent compared with the first quarter of 2009.
The company said in a statement: “This result reflects improved market conditions and the full benefit of the teams which joined the group in 2008... The improved trading conditions seen in the first quarter continue.”
Analysts at Canaccord Adams lifted their target price for Brewin Dolphin’s stock to 201p from 193p, repeating a “buy” recommendation. The new target price implies a multiple 15.8 times 2010 earnings, a premium to the sector average of 13 times.
“The likelihood of upgrades to consensus earnings should provide a catalyst of share price gains of up to 48 per cent,” the AIM-listed dealer said in a note.