Shore Capital has upgraded wealth manager Brewin Dolphin to a 'buy' after the group successfully navigated the Retail Distribution Review (RDR) rule change by retaining clients despite an increase to its fees.
The group, listed on the FTSE 250, began switching clients to a new pricing model in late 2011, and has since transferred about 70% of its clients' assets. There had been concerns such a move would lead to the exit of many customers, but Shore Capital said today Brewin's attrition levels have been muted, prompting it to upgrade the business. Shore Capital analysts Owen Jones and Gary Greenwood said the business was now a 'buy' given a price to earnings multiple of just 13 times at its current price. "The quantum of the 'if' that represents execution risk has reduced, aided by recen...
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