Berenberg hikes target for "best-in-class" Schroders after strong results

6th Mar 2015 10:33

Surging flows into funds at Schroders support the asset manager's premium rating to the sector, according to Berenberg, which hiked its target price for the stock on Friday."Schroders is a best-in-class asset/wealth manager with strongly performing funds and global reach," Berenberg said.The broker raised its target from 2,900p to 3,340p and maintained a 'buy' recommendation for investors following "another excellent set of results".Schroders reported on Thursday that adjusted pre-tax profit was up 11% in 2014 at £565m, some 5% ahead of consensus expectations.Berenberg said after a reasonably slow second and third quarter, flows picked up sharply towards the end of the year."Even aside from the £12bn Friends Life mandate which funded in Q4, net inflows of £5.8bn in the quarter were the highest level recorded since 2010 as the Institutional business saw momentum pick up sharply," the broker said.The stock was down 1.3% at 3,136p on Friday morning after making strong gains the previous session.