Berenberg maintains 'buy' rating on Integrafin following FY results

(Sharecast News) - Analysts at Berenberg reiterated their 440p target price and 'buy' rating on financial services firm Integrafin on Friday following the group's full-year results earlier in the week as they highlighted that 50% operating margins appeared to be "back within reach". Berenberg said Integrafin's FY25 results showed "a strong recovery" in net inflows, helped by a "significant increase" in transfers from competitors, and a small beat at the earnings per share level.

On the outlook, Berenberg stated revenue margin attrition should slow now that the platform was "competitively priced", something that had been pre-flagged and was already reflected in consensus.

"On cost, guidance is for only c3% cost growth per annum in FY26 and FY27, with investment and cost inflation partly offset by c£4m of gross annual cost savings, to be delivered in full by the end of FY27," noted Berenberg "While this guidance is more explicit than that provided previously, this is also already largely reflected in consensus."

Further out, the German bank expects margin expansion now that the investment cycle, announced in May 2022, has ended. Management stated at the time that it could get back to a roughly 50% operating margin post-investment and, given that Berenberg now expects to see margins of 49.7% in FY28, it "looks like this is finally back within reach".

Reporting by Iain Gilbert at Sharecast.com