Liberum Capital downgrades Brewin Dolphin due to weak markets

24th Aug 2015 14:48

(ShareCast News) - Liberum Capital said market weakness prompted it to slash its rating for Brewin Dolphin Holdings to 'hold' from 'buy'.The brokerage said in a note to clients it had cut its price target for Brewin to 285p from 359p.At 1504 BST shares in the investment manager were down by 5.43% to 275.60p."Despite the significant and ongoing improvement in the earnings quality in the last couple of years, Brewin remains highly correlated to market movements," Liberum Capital analyst Justin Bates said in a note.He added that Liberum's downgrades were driven by weaker and quieter markets.Liberum downgraded its earnings per share forecasts by 7% for the full year 2015, and by 14% for both years 2016 and 2017.The brokerage said it forecast the FTSE 100 to be flat year on year at the end of September 2015, at 6,623. It had initially expected 6% growth to 7,053."We might see short-term weakness due to the current market malaise but remain supporters based on the quality improvements delivered and favourable long-term dynamics," Bates said in a note.