Just Group plc, the Financial sector company, was revisited by a Wall Street analyst on August 8. Analyst Philip Kett from Jefferies downgraded the rating on the stock to a Hold and gave it a p219.20 price target.
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Philip Kett has given his Hold rating due to a combination of factors surrounding Just Group plc’s recent developments. The company announced a takeover offer by Brookfield, which values Just Group at a significant premium compared to its previous trading prices and historical highs. This premium is considered attractive, and the deal has already garnered management’s support, suggesting limited potential for higher value from other buyers or as an independent entity in the near term.
Additionally, the company’s 1H 2025 results prompted a reevaluation of forecasts, with notable reductions in sales and new business margins due to industry-wide challenges and competitive pressures. Despite these adjustments, the market seems to have priced in the takeover with minimal risk of non-completion, reflecting the time value of money. Furthermore, while Just Group has strengthened its balance sheet and sales platform, cash generation remains flat, leaving questions about sustainable value growth, which the takeover offer has temporarily overshadowed.
According to TipRanks, Kett is a 5-star analyst with an average return of 15.7% and an 83.41% success rate. Kett covers the Financial sector, focusing on stocks such as Munich Reinsurance, Allianz, and Assicurazioni Generali S.p.A..
In another report released on August 8, Barclays also downgraded the stock to a Hold with a £2.20 price target.