finnCap have initiated a buy recommendation on wealth management company Kingswood. finnCap have attached a price target of 39p with their recommendation.
Kingswood has undergone a dramatic turnaround under the lead of CEO David Lawrence and finnCap now forecast EBiTDA of c£20m.
Kingswood has embarked on a wave of acquisitions since the new CEO started in 2020 and now has Kingswood £9.1 billion of Assets under Advice and Management and over 19,300 clients.
The company has global operations after entering the US with a number of acquisitions.
Kingswood is now pursing further growth by continuing their strategic acquisitions. Funding for their strategy is readily available after Pollen Street Capital provided up to £80m of growth capital to fund acquisitions.
finnCap highlighted the benefits of increasing scale for wealth management companies and made comparisons to the high margin business model of St James’s Place.