Jupiter Fund Management Gains Altitude as Deutsche Bank Lifts Price Target to 130p

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Analyst Confidence Surges Amid Strategic Reshaping

Jupiter Fund Management Plc (LON:JUP) has received a fresh vote of confidence from Deutsche Bank, which raised its target price on the asset manager’s stock to 130p from 110p. This upward revision reflects growing optimism around Jupiter’s strategic acquisition of CCLA and its aggressive cost-cutting initiatives, both of which are expected to reshape the company’s financial trajectory and operational resilience.

The revised target comes as Jupiter’s shares hover near a 52-week high, buoyed by renewed investor interest and a series of analyst upgrades.

Key Highlights from Deutsche Bank’s Revision

Deutsche Bank increased its price target to 130p, citing improved earnings visibility and strategic execution
The bank maintains a Hold rating, signaling cautious optimism amid ongoing restructuring
The upgrade follows Jupiter’s £100 million acquisition of CCLA, a UK-based charity-focused asset manager
Analysts believe the deal will enhance Jupiter’s diversification and profitability, especially through non-profit and local authority client segments

Strategic Acquisition of CCLA: A Game-Changer

CCLA brings over £15 billion in assets under management, significantly boosting Jupiter’s scale
The acquisition expands Jupiter’s product suite into multi-asset, money market, and property offerings
Limited client and product overlap ensures minimal disruption and smoother integration
The deal is expected to close by year-end, with cost synergies projected to materialize in 2026

Operational Restructuring and Cost Discipline

Jupiter has identified £15 million in annualized cost savings, targeting full implementation by end-2026
The company aims to achieve a 70% cost-to-income ratio, down from previous estimates
Non-compensation costs for FY25 have been revised downward from £110 million to £105 million
These measures are part of a broader strategy to streamline operations and improve margin stability

Market Performance and Investor Sentiment

Jupiter’s share price recently touched 126.20p, marking a new 52-week high
The stock has gained over 45% year-to-date, outperforming many peers in the asset management space
Despite the rally, analysts remain cautious due to the company’s high beta of 1.42, indicating elevated volatility
The market cap stands at approximately £635 million, with a price-to-earnings ratio of -71.56, reflecting past earnings challenges

Analyst Landscape and Broader Outlook

Deutsche Bank’s upgrade follows similar moves by Canaccord Genuity, which doubled its target to 120p and shifted its rating from Sell to Hold
Investec previously upgraded Jupiter to Buy, citing encouraging AUM trends and disciplined cost management
Analysts believe Jupiter’s turnaround hinges on successful integration of CCLA and sustained cost control
The next few quarters will be critical in validating the company’s strategic direction and dividend outlook

Closing Insight

Jupiter Fund Management is navigating a pivotal phase in its evolution, with Deutsche Bank’s upgraded price target underscoring renewed confidence in its strategic roadmap. As the company integrates CCLA and tightens its cost structure, investors are watching closely to see if Jupiter can sustain its upward momentum and deliver long-term value.

Source: Investing.com ,MarketBeat . AskTraders , TechDows

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