With the assets under management ahead of expectations, a third of the market capital in cash and a prospective dividend yield of nearly four per cent, this one looks like it has flown under the radar.
"Shaken by the loss of two star fund managers in April, investment firm LSE:MGR:Miton looks to have weathered the storm judging by full-year results Thursday. Its shares responded well, having doubled since the Brexit crash and now trading at ..."
Fund group Miton (MGRM) struggled in the first half of the year but momentum is returning as rising equity markets stem outflows.
Peel Hunt analyst Stuart Duncan retained his buy recommendation and target price of 42p on the shares, which jumped 8.1% to 28.7p yesterday.
The first half of 2016 was a difficult period for Miton given the outflows suffered from a key fund, he said.
However, there is evidence that momentum is now returning to the business and we expect earnings growth in full-year 2017 despite the headwinds faced.
He noted the asset increase to £2.7 billion at the end of August - slightly higher than expected - helped by rising equity markets and more modest outflows.
Although the first half of the year has highlighted the risks for smaller fund managers, Miton has an attractive range of products that have potential to deliver inflows and the balance sheet to support future growth initiative, said Duncan.
"Miton Group (MGR), a mainly "retail" asset manager, is an interesting recovery play with lessons about the mercurial nature of fund management. Its AIM-listed shares have plunged from about 50p a year ago, recently as low as 19p, after the ..."
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