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RBC Capital upgrades Schroders to 'sector perform'
21st Jul 2021 12:43
(Sharecast News) - RBC Capital Markets upgraded Schroders to 'sector perform' from 'underperform' on Wednesday, hiking the price target to 3,400p from 3,000p.
The bank said Schroders' strategy to transition away from its core traditional active management products and instead focus on the structural growth areas of private assets, solutions and wealth management is a sensible long-term strategy.
"In the short term, a strong ESG offering and improving investor sentiment should stabilise outflows from traditional active products.
"With a valuation in line with the sector, and the likely lack of a near-term catalyst for the shares to underperform, we upgrade to sector perform."
The bank said Schroders' strategy to transition away from its core traditional active management products and instead focus on the structural growth areas of private assets, solutions and wealth management is a sensible long-term strategy.
"In the short term, a strong ESG offering and improving investor sentiment should stabilise outflows from traditional active products.
"With a valuation in line with the sector, and the likely lack of a near-term catalyst for the shares to underperform, we upgrade to sector perform."