Broker snap: Peel Hunt recommends to buy Evolution

Peel Hunt reiterated its buy recommendation on investment house Evolution Group as the company announced the potential acquisition of BNP Paribas Private Investment Management.Evolution said that its private client investment management subsidiary, Williams de Broë, was in advanced discussions to buy BNP's wealth management operation, formerly known as Fortis Private Investment Management. "The earnings mix of the group is shifting towards being led by the Wealth management division (we forecast 52% of revenue from that source for 2011 up from 47% as at 2010). This acquisition only adds to this proportion and as this continues the group should begin to trade on a higher multiple," said analyst Henry Biddle.A target price of 86p was kept.BC