RBC Capital upgrades Rathbones to 'outperform'

(Sharecast News) - RBC Capital Markets upgraded Rathbones on Wednesday to 'outperform' from 'sector perform' and lifted the price target to 2,000p from 1,850p, citing underappreciated growth and attractive capital return prospects. "As full integration of Investec Wealth nears, and the financial benefits of the deal fully accrue, RAT is a full-service wealth manager operating at scale," RBC said.

"Timely arrival of new management offers an opportunity for further strategic progression, to ensure the enlarged franchise achieves its organic growth potential," it added.

It noted that Rathbones is trading at a material discount to peers despite stronger near-term growth, and said it offers sector-leading capital returns.

"We see a compelling value opportunity and upgrade to outperform," the bank said.