Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Broker tips: International Capital Group, Quilter

(Sharecast News) - Berenberg started coverage of capital asset manager International Capital Group at 'buy' on Thursday with a 2,600p price target. "We view ICG as a long-term earnings growth story," it said. "We think the private markets industry will continue to grow, and that ICG is well positioned to benefit from this growth given its established brand, diversified business model, and scale."

Berenberg said that originally a mezzanine finance lender, ICG has demonstrated its ability to develop and scale new investment strategies and now runs around $70bn of fee-earning assets under management (AuM).

"We like ICG's focus on organic growth and think that the company will continue to develop new strategies across asset classes and geographies," it said.

Berenberg said there is headroom for growth and that ICG should be able to deliver around 8% per annum growth in third party fee income from FY24 (year ended March 2024) to FY27.

"We expect this to be driven by the expansion of ICG's institutional client base as well as a greater average share of wallet," it said.

It also said that the company has an impressive track record of fundraising and has increased its fee-paying AuM at about a 20% compound annual growth rate over FY15-24.

"We also believe that a pick-up in deal activity (which should be enabled by base rate cuts) could be a tailwind for performance fee growth."

Jefferies initiated coverage of Quilter 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.

Share this article

Related Sharecast Articles

Broker tips: Fresnillo, Smith and Nephew, 3i Group
(Sharecast News) - Canaccord Genuity downgraded Fresnillo on Monday to 'hold' from 'buy' as it pointed to a strong run over the past three to six months.
Broker tips: Warpaint, Schroders, Braemar, Morgan Sindall
(Sharecast News) - RBC Capital Markets initiated coverage of Warpaint on Friday with an 'outperform' rating and 685.0p price target.
Broker tips: Nexteq, Lloyds
(Sharecast News) - Analysts at Canaccord Genuity lowered their target price on business-to-business technology firm Nexteq from 200.0p to 110.0p on Friday, citing short-term headwinds.
Broker tips: Bridgepoint, Elementis, IAG, EasyJet
(Sharecast News) - Citi downgraded its stance on alternative asset fund management group Bridgepoint on Wednesday to 'neutral' as it said there were limited near-term catalysts after the shares have risen 80% over the past year.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.