-
Products & Services
-
Equity Research
- Companies
-
Research
- Taaleri - Eyes on Wealth Management
Taaleri - Eyes on Wealth Management
Co’s H1/19 operating profit margin guidance 20-25%
Taaleri will report H1/19 results on August 15th. Taaleri has previously given guidance for a H1 operating profit margin of 20-25%, mainly following a decline in continuing earnings in Wealth Management and the postponement of planned projects to H2/19. The corresponding full year margin is expected to be slightly lower than in 2018 (33.0%).
Financing main earnings contributor in H1/19E
We expect the bulk of Taaleri’s H1 results to be delivered by Financing, following expected solid investment returns from the favourable market environment during H1. Wealth Management’s continuing earnings are as per company guidance expected to be lower y/y, and we further expect performance fees and investment returns to have been only minor. We see reason for viewing AUM development with caution and will focus our attention in the H1/19 report on the development of Wealth Management. We expect the operating profit of Energy to have remained in the red during H1 but the first closing of the SolarWind II -fund at EUR 220m post-Q2 as well as the expected exit from the Truscott-Gilliland East wind farm are expected to significantly boost both Energy’s and group earnings in H2.
BUY with a target price of EUR 8.0 (8.5).
The development of Wealth Management’s continuing earnings gives some reason for concern. However, with the currently limited information we do not see a basis for extrapolating any long-term conclusions before the H1 report. As such we retain our BUY rating but lower our target price to EUR 8.0 (8.5).