RBC Capital Markets downgraded Schroders Plc to “sector perform” from “outperform,” citing limited upside potential after Nuveen’s £9.9 billion offer. The brokerage noted the stock trades near the implied value of the 612p-per-share bid, reducing expectations for further gains.

Nuveen’s proposal values Schroders at 16.3 times 2026 earnings, a 21% premium to its seven-year average P/E ratio of 13.5 times. RBC highlighted that 42% of Schroders’ share capital is secured through irrevocable commitments from the family and directors, increasing the likelihood of the deal’s success. The firm raised its 2026 revenue forecast by 1% but emphasized that the upside is constrained by the pending acquisition.

Schroders’ shares currently trade at 585.50p, below the 612p offer but near enough to dampen speculative movement. RBC modeled a downside scenario at 515p if the deal fails, using a discounted cash-flow valuation with 14% WACC. An upside scenario at 670p assumes a rival bid, though no such offer has emerged.

While RBC upgraded 2026 adjusted diluted EPS to 37.55p (from 36.12p), it warned that risks like a failed offer, weak fund performance, or market volatility could pressure earnings. The downgrade reflects a cautious stance amid structural uncertainties despite the premium valuation.