Mark Williamson, marketing analyst for City firm Peel Hunt, said he had changed his opinion of the firm since the arrival of Jonathan Polin in August 2011.
In his note, Mr Williamson said: “I make no bones about it: Ashcourt Rowan was a dog with fleas up to August 2011, at which point a dynamic board, led by Mr Polin, was appointed.
He said a period of restructuring had helped to “tackle the legacy issues” and revitalise the business, mentioning the £8.5m raised in November 2011 that helped the firm become RDR-ready ahead of the January 2013 deadline.
Interim results in November 2012 showed the firm had achieved cost-savings of £6m, with more to come.
Mr Williamson added: “I believe the investment opportunity is compelling, with investors likely to make a multiple of their in-price over the next few years, rather than the run-of-the-mill 15 per cent to 20 per cent.
“For me it’s a high-conviction buy.”
Jonathan Polin, chief executive of London-based Ashcourt Rowan, said of the ongoing restructuring: “We have made huge strides and there is more to come. It is an exciting time for the business.”