Broker labels Woodford's Patient Capital trust a 'sell'

Broker Stifel has recommended investors sell Neil Woodford's Patient Capital trust due to its share price trading at a high premium to NAV.

The recommendation follows the addition of the trust to the FTSE All Share and FTSE 250 indices earlier this month, which caused its share price to jump to a 13% premium to net asset value. Stifel analyst Iain Scouller said only 4.3 percentage points of the 16% jump in the trust's share price since launch in May was driven by NAV growth, meaning the shares had risen "too far too soon". That prompted the broker to initiate coverage with a 'sell' recommendation, but others took a more measured approach. Adrian Lowcock, head of investing at AXA Wealth, said: "It is hard to see this 'W...