Berenberg lowers target price on Mattioli Woods

Berenberg noted that Mattioli's interim trading update contained figures that were broadly in line with expectations. Although client assets fell slightly during the period, driven by negative market movements, revenues grew year-on-year as a result of an "elevated demand" for financial advice.

Looking forward, the German bank stated that while the market and economic environment "continues to remain uncertain", Mattioli's diversified business model provides resilience, in its view.

Berenberg, which said current market conditions were the reason for its price target move, maintained its 'buy' rating on the stock.

"Management expects demand for financial advice to continue to remain strong given the recent proposed changes to pension and tax rules, and current macroeconomic conditions. The business also points to some recent signs of improving market conditions, which, if these continue, would benefit its investment management businesses," said Berenberg.

"Mattioli also continues to work on the rollout of its pension banking proposition, which should involve sharing of interest income generated between clients and the group. On the M&A front, management highlights that its pipeline of potential bolt-on acquisitions remains robust."

Reporting by Iain Gilbert at Sharecast.com