Rathbones Group (LON:RAT) Price Target Raised to GBX 1,800

Key Points

• Deutsche Bank raised Rathbones Group’s price target from GBX 1,700 to GBX 1,800 while retaining a “hold” rating, implying 6.64% potential upside from the previous close.
• Analyst sentiment remains mixed: Jefferies reiterated an “underperform” rating with a GBX 1,360 target, while the broader consensus is “hold” with an average target of GBX 1,703.33.
• Rathbones reported GBX 88.50 quarterly EPS, and insider Michelle Scrimgeour bought 3,055 shares for approximately £49,613. The company’s wealth-management division also recorded a second consecutive quarter of net inflows, though asset-management income declined and regulatory risks remain.

Rathbones Group (LON:RAT - Get Free Report) had its price target lifted by research analysts at Deutsche Bank Aktiengesellschaft from GBX 1,700 to GBX 1,800 in a research report issued on Friday, Digital Look reports. The brokerage presently has a "hold" rating on the stock. Deutsche Bank Aktiengesellschaft's target price would suggest a potential upside of 6.64% from the company's previous close.

Separately, Jefferies Financial Group reiterated an "underperform" rating and issued a GBX 1,360 target price on shares of Rathbones Group in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Rathbones Group currently has a consensus rating of "Hold" and an average price target of GBX 1,703.33.

Rathbones Group Stock Performance

Shares of LON:RAT opened at GBX 1,688 on Friday. The firm's 50 day simple moving average is GBX 1,620.16 and its 200-day simple moving average is GBX 1,759.38. The company has a debt-to-equity ratio of 10.07, a quick ratio of 0.14 and a current ratio of 111.06. Rathbones Group has a one year low of GBX 1,490 and a one year high of GBX 2,500. The firm has a market cap of £1.72 billion, a PE ratio of 15.03, a price-to-earnings-growth ratio of -26.52 and a beta of 0.72.

Rathbones Group (LON:RAT - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported GBX 88.50 earnings per share (EPS) for the quarter. Rathbones Group had a return on equity of 8.95% and a net margin of 11.20%. As a group, equities analysts predict that Rathbones Group will post 174.93 EPS for the current year.

Insider Buying and Selling

In other Rathbones Group news, insider Michelle Scrimgeour purchased 3,055 shares of Rathbones Group stock in a transaction dated Thursday, October 22nd. The stock was acquired at an average price of GBX 1,624 per share, for a total transaction of £49,613.20. Over the last quarter, insiders have bought 3,093 shares of company stock worth $5,021,956. Company insiders own 1.67% of the company's stock.

Rathbones Group News Roundup

Here are the key news stories impacting Rathbones Group this week:

• Positive Sentiment: Third-quarter operating income increased 3%, and the wealth-management division recorded a second consecutive quarter of net inflows. Higher funds under management and administration could support recurring revenue, while management expects fourth-quarter operating margins to be broadly in line with expectations. Rathbones Q3 Operating Income Up 3%, Sees Q4 Operating Margin In Line
• Positive Sentiment: Rathbones said its improvement plan following a Skilled Person review remains on track, including progress on restricted-client issues. This may reassure investors that operational and compliance weaknesses are being addressed. Rathbones improvement plan on track after Skilled Person review
• Positive Sentiment: Insider Michelle Scrimgeour purchased 3,055 RAT shares at an average price of GBX 1,624, investing approximately £49,613. The purchase may be interpreted as a sign of management confidence in the company’s valuation and recovery prospects. Rathbones Group insider share purchase
• Neutral Sentiment: The return to wealth-management inflows is encouraging, but investors will likely want evidence that the improvement is sustained before assuming a durable recovery in asset growth and earnings. Rathbones funds rise as wealth management returns to inflows
• Negative Sentiment: Asset-management operating income declined, offsetting some of the benefit from stronger wealth-management results and highlighting uneven performance across the group. Rathbones Q3 operating income by division
• Negative Sentiment: Rathbones faces a further FCA investigation or order that could cost about £1 million. Additional regulatory exposure could pressure sentiment and dilute the benefit of the operating recovery. Rathbones faces potential FCA cost

About Rathbones Group

With roots dating back to 1742, Rathbones is one of the UK's leading providers of investment and wealth management services for private clients (individuals and families), charities, trustees and professional partners. Rathbones' purpose is to help more people invest their money well, so they can live well. Rathbones has been trusted for generations to manage, preserve and grow clients' wealth and services include discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services.

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