Canaccord Genuity raises target price on Brewin Dolphin

Analysts at Canaccord Genuity nudged up their target price on Brewin Dolphin from 335.0p to 379.0p on Thursday.

Canaccord revised its assumptions following Brewin's 2020 full-year results in November and its first-quarter trading update in January, with its earnings per share forecasts increasing 33% in 2021, 14% in 2022 and 10% in 2023.

The Canadian bank said the main driver for the changes had been stronger market performance than expected, both in the last trading year and in the final two months of the calendar year, with Brewin delivering "significant outperformance" versus the market in.

Canaccord, which reiterated its 'buy' rating on the stock, also highlighted that Brewin's recent trading update, which saw the company report an 8% bump in funds under management to £51.4bn, set a sound base for double-digit earnings per share growth in 2021.

"Driving fee income and financial planning commission is one of the key tasks for management in what is a very competitive but rapidly changing operating environment," said Canaccord. "The very strong client acquisition achievements of the self-direct platforms during lockdown illustrates the point."