Berenberg lowers target price on Liontrust following H1 results

Analysts at Berenberg lowered their target price on Liontrust Asset Management from 625.0p to 500.0p on Thursday but said the group was still "well positioned for when markets turn".

Liontrust's H125 results revealed assets under management and advice had declined during the period and into the start of H2. However, it also said that it intends to maintain its dividend at the same level as last year and launched a £5.0m buyback programme.

In addition to the target price reduction, the German bank opted to maintain its 'hold' rating on the stock as a result of "continued uncertainty" about the flow environment.

"While it is challenging to predict when the active flow environment will become more positive, we view Liontrust as well positioned to benefit from a tailwind once favourable investor sentiment returns to the UK equity market," said Berenberg.

"We update our forecasts, with our FY25 EPS figure decreasing by circa 3%. This is primarily driven by a decrease in our flow forecasts for FY25 (from -£3.0bn to -£3.6bn) and a decrease in our revenue margin assumption from circa 61 basis points to circa 60 basis points. This is partially offset by lower operating costs."

Reporting by Iain Gilbert at Sharecast.com