Broker tips: Mattioli Woods, Deltic Energy

Analysts at Berenberg reiterated their 'buy' rating and 870.0p target price on wealth management firm Mattioli Woods on Wednesday following the group's "solid" interim results a day earlier.

Berenberg noted that Mattioli had achieved year-on-year growth in both revenues and pre-tax profits. During the half, the company also initiated a partnership with T Rowe Price, which Berenberg reckons should improve its investment product offering for clients.

"During the period, the company announced a partnership with US asset manager T Rowe Price, which will develop and advise on multi-asset funds for Mattioli's clients. This is beneficial for Mattioli given that the scale and reputation of T Rowe Price should enhance the wealth manager's investment proposition," said Berenberg.

Looking ahead, the German bank expects the company to continue to look to supplement growth with inorganic, bolt-on opportunities.

Berenberg also highlighted that Mattioli trades on roughly 12.0x forward earnings multiple.

Over at Canaccord Genuity, analysts lowered their target price on exploration and development firm Deltic Energy from 185.0p to 160.0p on Wednesday following the recent farm-out of 25% of UK licence P2437.

Deltic announced the farm-out to Dana Petroleum of a quarter of P2437, which contains the Selene exploration target scheduled to be drilled in Q3 24.

Canaccord Genuity sees the transaction as "an excellent result" for Deltic as it retains a significant 25% interest in Selene while now being effectively fully carried for the upcoming well costs.

"As a result, Deltic will have farmed out separately to two high-quality partners, first Shell and now Dana, a total of 75% of its original 100% interest in Selene. The outcome is that Deltic is now fully carried for its 25% share of the Shell estimated success case well cost of gross $47.0m (drilling and testing). Deltic expects this transaction to complete in the near future,"" said Canaccord, which reiterated its 'speculative buy' rating on the stock.

The Canadian bank added that "much more important" than its mechanical target price change was the presence of "two excellent partners", noting that Deltic has effectively fully carried Selene well participation, and the company's "still significant 25% ownership", which provides "meaningful upside" in the success case and room for a further farm-down or outright sale in the future.