Shares of PensionBee, a UK-based digital pension provider, are expected to more than double in a year, according to some analysts. Bank of America said the fast-growing fintech company “has enjoyed significant financial and strategic success” over the past year after releasing its latest quarterly results last month. As a result, the Wall Street bank expects the stock to rise 216% to £2.17 ($2.63) over the next 12 months. The positive outlook would be a reversal for the fast-growing company’s shares, which have fallen 60% by 2022 amid a broader sell-off in the UK small and mid cap markets. . It traded at £0.70 a share on Thursday afternoon. Still, the stock has recouped some of those losses and is up 26% this year on the back of an upbeat outlook from analysts, as the company is expected to turn a profit next fiscal year. “Achieving this after the tough market conditions of 2022 is a testament to the company’s business,” said BoA analysts led by Philip Middleton. “Once PensionBee is profitable, we think it will grow significantly. mocked.” PBEE-GB 1-Year Line Banks aren’t alone on a positive outlook for PensionBee.The consensus price target of the five analysts covering the company gives the stock 146% upside potential. Berenberg says PensionBee’s high level of brand awareness in the UK means the company can reduce marketing costs in the future, which will help it turn a profit. will increase by more than 143% over the next 12 months to £1.70. “We expect marketing costs to fall when compared to [financial year] “This drop is expected to be driven by an improvement in the company’s brand recognition (more than 50% of people now recognize the brand, based on survey data),” said stock analyst Alexander Bowers. close to consumers). Founded in 2014, PensionBee now has £3 billion in assets under management across 183,000 clients. By comparison, competitor Hargreaves Lansdown manages £39 billion of assets on a self-managed retirement platform. of its own, the largest of the UK PensionBee growth target — 2% of the £700 billion According to Bank of America, the UK pension market — looks more viable in the long run, thanks to the efficiency the company’s operations in 2022. “The most important lesson of the 22nd fiscal year update, in our view, is that the risk in PensionBee has been further reduced. If it can prosper in this condition. Given last year’s cold weather, we think it will prosper in the future,” they added.