“QUILTER (QLT.L) – Re-evaluation of the investment case, upgrade to Hold, fairly valued on SOTP; Sell to Hold, Tgt 110p to 165p. Last Close 168p.
David McCann: It had previously been our view that insufficient risk was priced in to the shares, with one of the key reasons being that Quilter (unlike St. James’s Place) had not made any substantive changes to its business model since Consumer Duty became effective in Jul-23. We note that two years have passed since then, the regulator does not appear to have raised any concerns, the board have now attested twice to the FCA that Consumer Duty is embedded, and the company recently stated that they “vehemently disagree” that Consumer Duty is a negative to the Quilter investment case.”
