Broker snap: Canaccord cuts Brewin Dolphin to 'hold' after recent run

29th Jan 2014 10:01

Canaccord Genuity has lowered its recommendation for wealth management firm Brewin Dolphin from 'buy' to 'hold' after the stock's recent run.The target price for the shares has been left at 304p."Brewin Dolphin shares have performed well: since December 4th they are up 8.1% (10.4% relative to the FTSE All Share); over the past three months there are up 7.4% (8.5% relative) and over the past year up they have risen 43.9% (30.0% relative)," said analysts Robin Savage and Arun Melmane."As we anticipate only a 4.2% total shareholder return over the next 12 months, we reduce our investment recommendation from 'buy' to 'hold'."Nevertheless, the broker has left its forecasts for Brewin unchanged after the company's first-quarter update on Wednesday met the guidance given when full-year results were presented.Total income rose by 6.5% year-on-year in the three months ended December 29th 2013 to £69.6m. The company said growth was helped by a good investment performance, ongoing new client inflows to its discretionary service and the benefits of a transparent pricing structure.Canaccord Genuity expects Brewin to report full-year income of £302.5m for the year ending September 2014, compared with £283.7m previously.The stock had pared earlier gains by mid-morning and was trading just 0.26% higher at 303.1p by 10:06.BC