Shore Cap cuts rating on AJ Bell

The broker, which has reduced the rating to ‘hold’ from ‘buy’, said: "Both the advised and direct-to-consumer platforms continue to take market share, and we believe organic growth, pre any market impact, will be 5-6% in the 2023 full year, even after accounting for much tougher economic circumstances. Fourth-quarter growth was an annualised 7%.

"Despite further caution on net new money and a higher tax rate in our new numbers, the combination of revenue yield expectations being a little ahead of consensus and a mark to market that is a significant positive quarter-to-date, means that our full year 2023 forecast [for] earnings per share is unchanged."

However, it added: "We love the business, but think valuation is now enough, so down to 'hold'.

"Organic growth in this economy should be lower, yet the stock is on the same-ish 2023 multiple of 24.8 times as it was on 17 January. It is also trading at a record premium to Hargreaves Lansdown. Discounted cash flow suggests a 300p fair value."