logo-loader
viewNucleus Financial

Financial platforms IntegraFin, AJ Bell, and Nucleus trend up after bullish Berenberg initiation

Berenberg initiated three financial platforms, saying it expects financial platforms to grow up to 12% annually, thanks to long-term structural trends in the sector including increasing wealth, ageing demographics and regulatory changes

Nucleus Financial -

“Remarkable growth” in financial platforms has prompted a raft of bullish valuations from Berenberg.

AJ Bell, Nucleus, and IntegraFin were all praised in a note to clients by the German bank on Thursday.

READ: AJ Bell gains 17% more customers as investors move online

Shares in financial platform IntegraFin Holdings PLC (LON:IHP) rose 1.5% to 395p in midday trading on Thursday, followed by sector-mates AJ Bell PLC (LON:AJB), up 1.8% and  Nucleus Financial Group PLC (LON:NUC), which gained 0.7%.

All three have had a storming year since floating on the London Stock Exchange in 2018, with shares on average rising 60% from their respective listing prices.

Berenberg also took heart from the 21% compound annual growth in assets under administration on the platforms since 2012.

The German investment bank rated IntegraFin as its “top pick” in the sector, initiating it at a ‘buy’ rating and setting a 460p price target, and slapped the same rating on the smaller Nucleus with a 205p price target.

It cited IntegraFin’s “best-in-class” margins, expected to expand to 53% in 2022, while “low hanging fruit” at AJ Bell and, in particular, Nucleus, should allow yet greater gains of 2-3 percentage points per year.

“Combined with growth in recurring revenues, this should drive impressive EPS growth of 16-20% per annum across the sector,” the bank concluded.

Berenberg said it expects both advisory and direct-to-consumer services, which help users manage financial portfolios, to continue to grow up to 12% annually, thanks to long-term structural trends in the sector including increasing wealth, ageing demographics and regulatory changes.

The bank initiated AJ Bell with a ‘hold’ and target price of 370p, saying that the diversified platform which offers both adviser and direct-to-consumer services was trading at a premium to the sector and so offered less upside.

AJ Bell said in October that it picked up 17% more customers in the past financial year and grew assets under administration by 13% to £52.3bn.

Quick facts: Nucleus Financial

Price: 140 GBX

LSE:NUC
Market: LSE
Market Cap: £107.06 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Buds & Duds: Ontario's cannabis retail expansion plan gives cannabis stocks...

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was 1.4% higher at 116.7 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF jumped 2.4% at C$9.55, while the OTCQX Cannabis index gained 0.6% to 434 points. Buds today are The Green...

2 days, 13 hours ago

RNS

Director/PDMR Shareholding

3 weeks, 3 days ago

Q3 2019 AUA update

on 10/25/2019

Interim Results

on 09/10/2019

Notice of Results

on 08/16/2019

2 min read