UBS upgraded St James's Place Plc (LON:SJP) to 'buy' from 'neutral' on Friday, citing earnings growth prospects and valuation support amid an AI-driven market sell-off. The brokerage cut its 12-month price target by 6% to 1,465p from 1,565p, reflecting potential risks linked to artificial intelligence disruption.

St James's Place shares closed at 1,271p on Feb. 19, down 13% year-to-date and 14% over the past month, primarily due to read-across from the launch of an AI-powered tax planning tool in the United States. UBS's revised base case assumes net flows fall to nil by 2032, reducing its valuation by 6% to 1,465p. The brokerage forecasts double-digit medium-term earnings growth, supported by changes to the group's charging structure implemented in August 2025 and the gradual run-off of £51.1 billion in 'Gestation' funds under management.

UBS expects underlying cash results to more than double from £392 million in 2023 to £873 million by 2030, with IFRS earnings per share projected to reach 292.2p by 2032. The bank outlined five AI sensitivity scenarios, with its base case implying a valuation of 1,465p. UBS also expects a £50 million share buyback to be announced with full-year 2025 results, alongside a further £65.5 million pre-tax release from the client redress provision.