Peel Hunt has updated its estimates for St James’s Place's results for the 2024 financial year, predicting a 7 per cent increase in underlying cash result than previously forecast.
It stated that its estimates were slightly below consensus but “now move more in line”, amending its estimate to an underlying result of £411mn for the 2024 financial year.
This is 7 per cent higher than the £385mn that was previously forecast.
This follows a trading update which was released by SJP yesterday (October 18) and was slightly ahead of consensus with “robust client engagement” delivering strong flows despite ongoing uncertainty.
The update detailed that SJP’s total FuM increased by 1 per cent to £184.4bn in the three month period ending September 2024, slightly ahead of the company complied consensus of £184bn.
As a result, Peel Hunt has taken this opportunity to make a few small changes to its model.
Edison Group executive director of content and strategy, Neil Shah, said: “St. James's Place has achieved record funds under management of £184.4bn as of Q3 2024.
“This growth was driven by solid client engagement and robust retention rates, with a year-to-date retention rate of 94.6 per cent.
“Despite macroeconomic uncertainties and ongoing speculation around the Autumn Budget, SJP’s strategic focus on cost efficiencies and a new simplified fee structure – set for implementation in 2025 – positions the company well for sustained growth.
“With a diverse investment portfolio and continued positive investment performance, SJP appears poised to navigate economic headwinds while supporting clients in safeguarding their financial futures.”
Peel Hunt added that shares have now almost doubled from their low point six months ago.
To reflect improving sentiment, Peel Hunt has increased its target price from 750p to 890p, and is continuing to see upside in the shares.
Additionally, SJP’s update noted that key projects, such as its charging structure and ongoing service review, are progressing in line with plans and that there is no change to financial guidance.
tom.dunstan@ft.com
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