🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

CFRA cuts St. James's Place stock target to £4.00, maintains sell

EditorNatashya Angelica
Published 22/03/2024, 15:34
© Reuters.

On Friday, CFRA, a notable financial research firm, adjusted its stock price target for St. James's Place plc (STJ:LN) (OTC: STJPF), a UK-based wealth management company. The price target was lowered to £4.00 from the previous £4.50. Despite this change, CFRA has decided to maintain its Sell rating on the company's shares.

The revision of the price target by CFRA comes after a notable decline in St. James's Place's share price since the last evaluation on February 28. The new target is set based on a price-to-earnings (P/E) ratio of 6.2 times for the year 2024. This figure represents a substantial discount when compared to the firm's five-year average forward P/E of 19.0 times.

The rationale behind the maintained Sell rating, as explained by CFRA, is due to expectations of margin pressure and persistent macroeconomic challenges. These factors are anticipated to affect client sentiment and activity negatively. Moreover, the increased competition in the asset management industry is likely to impede the company's progress on margins.

CFRA also cited the July announcement of a planned fee reduction and intensified regulatory scrutiny as reasons that could lead to a decrease in profitability for St. James's Place. According to the firm, these developments could potentially result in a weaker financial performance and, consequently, lower dividends for shareholders.

The research firm's decision to keep the Sell rating indicates that their investment thesis for St. James's Place remains unchanged. They suggest that the tough economic environment will continue to have an adverse impact on the company's business.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.