Quilter (LON: QLT) stock price has done well in the past few months even as most UK wealth managers came under pressure. The stock surged to 101.4p on Tuesday, 45% above its lowest level in 2023.
Quilter earnings aheadQuilter, formerly known as Old Mutual Wealth, is a leading wealth manager with a presence in the UK, Singapore, and Australia. With roots going back to 1,771, the company has over £106 billion in assets under management.
Quilter and other wealth management companies like St. James Place have come under intense pressure in the past few months. The biggest challenge is that UK authorities unveiled Customer Duty regulations that have impacted fees.
However, Quilter has managed to weather this storm in a better way than St. James Place, the biggest wealth manager in the UK. It did that because of its open and unbundled business model.
The company will be in the spotlight on Wednesday when it will publish its full-year financial results. Analysts expect that the company’s total revenue came in at £624 million in the last financial year.
They also believe that its revenue will grow steadily in the next two years, reaching £648 million and £677 million. Its adjusted profit is also expected to rise from £144 million in FY’24 to £152 million and £167 million in the next two financial years.
Therefore, Quilter’s stock will react to the headline figures and its statement on compliance to the consumer duty regulations. The management will also likely address the persistent rumours that it could become a takeover target.
Quilter stock price forecast
Turning to the daily chart, we see that the QLT stock price has recovered well in the past few months. This recovery started when it dropped to 69.90p in August last year. It formed an inverse head and shoulders pattern, which is a popular bullish sign.
The stock has also surged recently, rising from last Wednesday’s low of 93.60p to over 100p. That drop happened after the weak results by the likes of St. James Place and Abrdn. It has now moved to the 50-day and 25-day Exponential Moving Averages (EMA).
Therefore, the outlook for the stock is neutral ahead of earnings. The key support and resistance levels to watch will be at 93.6p and 105p.
The post Quilter (QLT) share price steady ahead of FY earnings appeared first on Invezz
