Jupiter Fund Management Plc, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Marina Massuti from Morgan Stanley upgraded the rating on the stock to a Hold and gave it a p130.00 price target.
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Marina Massuti’s rating is based on a combination of factors that influence Jupiter Fund Management Plc’s current market position. The acquisition of CCLA Investment Management for £100 million, funded entirely by cash, is a significant move that aligns with past transaction metrics. This acquisition is expected to close by the end of the year and could potentially drive substantial earnings growth, with projections of over 40% accretion by 2027 post-synergies.
Despite the structural challenges facing the active investment industry, such as the growing preference for ETFs and passive investments due to their simplicity and cost-effectiveness, Jupiter has shown signs of improvement. The company has experienced better mutual fund flows and is expected to convert its institutional pipeline in the near future. These factors, along with management’s effective cost control and the positive earnings revision, have led to a more optimistic outlook, resulting in a Hold rating with an upgraded price target of 130p.
In another report released on July 1, Deutsche Bank also maintained a Hold rating on the stock with a £0.90 price target.