Peel Hunt issues buy recommendation for Kingswood with 40p target price

Group's US presence ket factor on decision

Peel Hunt has initiated its coverage of integrated wealth manager Kingswood with a buy recommendation and a target price of 40p per share.

In its initiation of coverage, Peel Hunt analysts noted the firm's assets under management (AUM) in excess of £5bn and EBITDA over £20m, despite being in "the early stages of development". Kingswood takes majority stake in MHC in $5.1m deal Over recent years, Kingswood has "undergone significant change" amid the acquisition of five financial advice businesses, as it seeks to utilise "consolidation opportunities" in both the UK and US to "build a materially larger business, leveraging off the platform that has been built". Analysts Stuart Duncan and Robert Sage pointed to four key e...