Mortgage Advice Bureau to benefit in tough markets - Peel Hunt
Mortgage Advice Bureau (MAB1) is facing a tough environment but it has competitive edges that will allow it to succeed in weak markets, says Peel Hunt.
Analyst Robert Sage reiterated his ‘buy’ recommendation and target price of £16.20 on the stock, which slipped 4.2% to finish at 592p on Tuesday.
‘Visibility over Mortgage Advice Bureau’s shorter-term financial outlook has been clouded by turmoil in the external environment, but the potential to accelerate the group’s growth agenda has increased as its competitive advantages play more strongly in weaker markets,’ he said.
He added that performance remains ‘good’ and it ‘tends to gain market share more rapidly in weak market conditions as advisers… have more need of the support that Mortgage Advice Bureau can provide compared with other mortgage networks’.