Jefferies starts coverage of Quilter at 'buy'
Jefferies initiated coverage of on Thursday with a 'buy' rating an 175p price target as it said catalysts were coming.
The bank said it can foresee positive catalysts for the stock, and that the impending provision for ongoing charges has not pinned the price down.
"When the skilled person report comes out in 1H25, it is possible that a low provision will be a positive catalyst," it said.
"Similarly, a budget without major tax hikes could release some pressure from 30 October. After then, and depending on the size of the provision, improving flows (and perhaps share buy-backs in the longer term) can lift earnings per share and the multiple."
Jefferies said the new platform is now driving meaningful flows and it thinks the market has priced in the provision it expects Quilter to take in 1H25 and is prepared for tax rises in the autumn budget.
Jefferies noted that its price target is 17% higher than the current price and allows for a £170m provision.
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