Material downgrade; Cheap, but hard to see what stops it being cheap

Research evidence excerpt

Material downgrade; Cheap, but hard to see what stops it being cheap

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Hold Rathbones 17 June 2026

Forecast Change

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 16 Jun 2026 (GBP) 1,620.00

RAT.L RAT LN LSE RAT

Price Target (GBP) 1,700.00

Diversified Financials

2,265.00 -

Asset Managers 52-week range (GBP) 1,654.00

Material downgrade; Cheap, but hard to

Valuation & Risks see what stops it being cheap

David McCann

Following the recent unexpected "regulatory update" and associated profit

Research Analyst

warning, we have updated our forecast and valuation assumptions. This results in +44-20-754-11564

a material downgrade to our earnings estimates and target price. Rathbones as an

investment, was previously widely considered to be an emerging "self help" story Jonas Dohlen

Research Associate

by the market, operating in a structurally attractive industry, given new

+44-20-7541-1561

management and a refreshed strategy. This unwelcome development inevitably

means in our view, the group will take a few further steps back before investors can

Key changes

look to it moving forward again. We remain hold rated. The shares are cheap on

2,100.00 to

most valuation metrics. However, given that meaningful and visible operating TP ↓ -19.0%

1,700.00

improvement feels like it has shifted even further out, it is hard to see what might

176.38 to

drive a re-rating or share price recovery more generally in the short term, absent a EPS 174.27 ↓ -1.2%

potential bid approach and/or material market beta (neither of which we factor in). Revenue (GBPm) 970 to 964 ↓ -0.6%

Source: Deutsche Bank

Forecast changes

We make the following key changes to our forecast assumptions: 1) We assume an Price/price relative