Berenberg lowers target price on 'resilient' Integrafin

Analysts at Berenberg lowered their target price on investment platform operator Integrafin from 480.0p to 320.0p on Thursday but said net inflows at the group remained "resilient" despite current market conditions.

Berenberg said Integrafin, which published a fourth-quarter funds under direction trading update on 18 October, saw FuD fall roughly 0.5% in the period, with net inflows more than offset by negative market movements in FuD.

However, although overall FuD fell throughout the year, driven by negative market movements in asset values, the German bank stated the "resilience of organic growth" was supportive for IntegraFin's long-term investment case.

"We have revised our forecasts going forward, primarily to incorporate the impact of the macroeconomic environment and FY 2022 reported FuD," said Berenberg, which stood by its 'buy' rating on the stock.

"To reflect changes to our forecasts and industry multiples, we have revised our price target to 320.0p per share, implying circa 22x price-to-earnings ratio (FY 2022E). IntegraFin's shares have fallen circa 60% year to date, and the company now trades on circa 16x P/E (FY 2022E), which is at the bottom end of its historical range of 20x-30x P/E."

Reporting by Iain Gilbert at Sharecast.com