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(Sharecast News) - Berenberg initiated coverage of Tatton Asset Management with a 'buy' rating and an 820p target price on Monday, arguing the group was well placed to sustain strong growth as it races toward its £30bn assets under management goal.
The German bank said Tatton's scalable operating model, rising margins and expanding adviser relationships supported a long runway for earnings and dividend growth.
Tatton, which manages £26.5bn of assets as of June 2026, has become one of the UK's leading on‑platform model‑portfolio service providers and Berenberg said the group had capitalised on structural growth in the managed portfolio service market, delivering 24% compound AUM growth since 2021 while maintaining a low double‑digit market share.
Berenberg also highlighted Tatton's competitive pricing, broad platform availability, strong investment performance and expanding IFA network as key drivers of continued momentum.
The analysts expects Tatton to hit its £30bn FY29 target early and said a longer‑term ambition of £60bn by FY33 looked realistic. Under conservative assumptions, Berenberg estimates operating profits could reach £65m, implying around 10% compound profit growth and a fall in Tatton's enterprise value/underlying earnings multiple from 11x today to roughly 6x. Operating margins, currently 52%, were forecast to rise toward 54%, supported by a stable revenue margin guided at 22bp for FY27.
Berenberg added that Tatton's ability to deliver strong investment outcomes at competitive cost positioned it well despite rising sector competition and stated its 820p target price, based on a discounted cash flow using a 12.5% discount rate, equates to around 20x FY27 earnings.
Deutsche Bank lifted its price target on Landsec on Monday to 750p from 730p following its agreement to buy the Metrocentre shopping centre near Newcastle for £516m.
The bank noted this is the largest UK shopping centre transaction since Landsec's acquisition of Liverpool ONE in 2024.
"The acquisition yield of 7.9% is attractive in our view, particularly considering the potential to enhance it to circa 8.3% through near-term asset management initiatives," DB said. "Alongside the £100m earmarked for consolidating its ownership interest in an existing retail asset, we estimate that circa 50% of the rent roll will come from retail.
"Given the high running yields of such assets and compounding rental growth, we think this is an attractive profile against the backdrop of higher discount rates."
DB - which rates Landsec at 'buy' - said that with the stock company trading on an approximately 8.5% earnings yield and a dividend yield approaching 7%, it continues to see strong valuation attractions.
