Peel Hunt upgrades Liontrust1 Jul 2025 12:26
Peel Hunt upgrades Liontrust
Peel Hunt has upgraded Liontrust Asset Management (LIO) as its valuation continues to suffer at the low end of the asset management sector.
Analyst Stuart Duncan increased his rating from ‘hold’ to ‘add’ and increased the target price from 365p to 435p despite the company continuing to face ‘challenging markets’.
He said its final results were ‘symptomatic’ of tough markets with profits 28% lower on a 19% reduction in assets under management. Duncan added that a rebasing of the dividend was ‘sensible’ giving ‘greater flexibility to support both organic and inorganic opportunities’.
‘After share price weakness on the day of results, Liontrust shares have since partially recovered,’ said Duncan.
‘However, the shares’ valuation continues to be at the lower end of the sector, with the enterprise value/Ebit multiple standing at 6 times full-year 2026.’
Shares in Liontrust were trading up 2.5%, or 10p, at 408p but are still down 14% this year, and 40% over one year.