After a strong run-up over the Christmas period, prices look fully valued. Yield investors are fine to stay here but traders may need to look elsewhere. Good fund inflows in advice and platform slightly offset by weak investment management division. Potential M&A activity provides some growth profile. At nearly 15x earnings looks markedly expensive relative to historical average. Solid dividend of 5.5% doesn’t make up for anaemic earnings growth. Balance sheet and free cash flow is improving but management are pushing up hill to accelerate improvement in their asset quality. M&A perhaps required.
$30.39 $8.92 $3.95