Rathbone Share Price (RAT)

Investec own 42% of Rathbones, there shares are also very attractive valuation and growth wise...could double in 5 years.

(Sharecast News) - Bank of America initiated coverage of wealth manager Rathbones on Wednesday with a 'buy' rating and 2,250p price target, as it said the stock remains highly undervalued on around 10x 2026 estimated price-to-earnings.

It noted that this is a 19% discount to the five-year average.

"We think the current valuation does not price in the transformational acquisition of IW&I, which has driven FUMA +67% and formed one of the largest UK wealth managers," the bank said.

"The migration of IW&I is due to complete in H125, followed by a net flow recovery and realisation of most synergies in H225E."

Bank of America said this should drive operating margin expansion to 28.4% in 2026E, versus consensus of 27.7%.

"We further expect wealth and asset management net flows to be supported by equity market momentum, softening interest rates and reallocation from US to EU equities," it added.

Https://www.tipranks.com/news/the-fly/rathbones-initiated-with-a-buy-at-bofa-thefly

Why the sudden price rise today anyone?

This and Investec, the ex parent company, are on the up. I have switched into Investec as they have huge growth ambitions over the next 5 years and also a 7% divi. Investec still own a decent chunk of N91 and Rathbones too so will benefit from both those companies doing well. GL.