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Wealth bonanza: the Rathbones & Brooks Macdonald bargains
by Dylan Lobo on Oct 24, 2013 at 10:01
‘Our 1700p price target is 5.3% above the current share price with a 3.5% dividend yield we expect an 8.8% total shareholder return.’
Brooks Macdonald: reiterate buy
In an update on 18 October Brooks said assets under management rose 5.2% in the three months to the end of September, primarily driven by new inflows of £170 million. Shares in Brooks are up by 8.3% over the last 12 months.
‘Our target price for Brooks Macdonald shares is 14.5% above the current share price; with a 2% dividend yield we expect a 16% total shareholder return,' Savage and Melmane said.
Brewin Dolphin: downgrade from buy to hold
While Brewin has yet to provide a pre-close trading update, Savage and Melmane are expecting the results to fall 'in line with expectations'. In what has been a busy year for the firm - it recently closed three branches in Inverness, Hereford and Teesside in branch tidy up - the duo needs more clarity before it returns to a more bullish stance.
Overall Savage and Melmane feel Brewin, which has seen its shares shoot up by 58% over the last 12 months, is starting to look expensive. ‘At 281p Brewin Dolphin shares are close to our 285p target set in May,’ they said.
‘We cut our investment recommendation from buy to hold. Full year results in early December may provide reasons to set a higher target price.’
Charles Stanley: downgrade from buy to hold
An update from the firm on 1 October confirmed that results are anticipated to be ‘in line with expectations’. Recent big news included a changing of the guard across its regional network, which saw it name 10 new branch heads.
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- Rathbone Brothers PLC
- Brooks Macdonald Group PLC
- Brewin Dolphin Holdings PLC
- Charles Stanley Group PLC
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