Jupiter Fund Management (JUP)

Sector:

Financials

Index:

FTSE 250

250.00p
   
  • Change Today:
    -6.60p
  • 52 Week High: 418.90
  • 52 Week Low: 164.70
  • Currency: UK Pounds
  • Shares Issued: 553.06m
  • Volume: 399,487
  • Market Cap: £1,382.65m

Canaccord cuts target for Jupiter Fund Management on M&A risk

By Alexander Bueso

Date: Tuesday 11 Feb 2020

LONDON (ShareCast) - (Sharecast News) - Canaccord Genuity cut its target price for shares of Jupiter Fund Management from 415.0p to 362.0p after the firm modified its capital allocation policy to include inorganic growth - before dividends.

The Canadian broker was projecting a payout ratio of 85.0% and 90.0% for 2020 and 2021.

That, analysts Portia Patel and Justin Bates said, was consistent without its historical target range, but now " shareholders must weigh up the value creation from potential accretive M&A against extraordinary distributions."

Since that will depend on the merits of the deals identified by management, at this point in time they could "flag only potential downside risk to our DPS forecasts".

"We value JUP at a 10% discount to the peer average to reflect this risk [resulting in a 2020 price-to-earnings multiple of 14.0], coupled with an uncertain net flow and EPS outlook, which results in a 362p target price, -1% TSR. Maintain HOLD."

Their projections were for flat net flows in 2020 and 3.0% growth in 2021, versus the 5.0% for both years which they had previously anticipated.

Market growth on the other hand was now pegged at 5% for 2020-21, where as previously they had been expecting 0.0% and 5.0% growth.

Furthermore, the analyts lowered their estimates for Jupiter's earnings per share in 2020-21 by 10.0% and 15.0%, respectively, to reflect lower net management fees and reduced scope for cost cutting.



Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

JUP Market Data

Currency UK Pounds
Share Price 250.00p
Change Today -6.60p
% Change -2.57 %
52 Week High 418.90
52 Week Low 164.70
Volume 399,487
Shares Issued 553.06m
Market Cap £1,382.65m

JUP Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
84.06% above the market average84.06% above the market average84.06% above the market average84.06% above the market average84.06% above the market average
78.63% above the sector average78.63% above the sector average78.63% above the sector average78.63% above the sector average78.63% above the sector average
Price Trend
54.94% below the market average54.94% below the market average54.94% below the market average54.94% below the market average54.94% below the market average
53.52% below the sector average53.52% below the sector average53.52% below the sector average53.52% below the sector average53.52% below the sector average
Income
92.09% above the market average92.09% above the market average92.09% above the market average92.09% above the market average92.09% above the market average
85.00% above the sector average85.00% above the sector average85.00% above the sector average85.00% above the sector average85.00% above the sector average
Growth
85.6% below the market average85.6% below the market average85.6% below the market average85.6% below the market average85.6% below the market average
89.83% below the sector average89.83% below the sector average89.83% below the sector average89.83% below the sector average89.83% below the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 8
Sell 1
Strong Sell 2
Total 13
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

JUP Dividends

  Latest Previous
  Final Interim
Ex-Div 12-Mar-20 08-Aug-19
Paid 09-Apr-20 28-Aug-19
Amount 9.20p 7.90p

Trades for 16-Jul-2020

Time Volume / Share Price
13:49 8,608 @ 249.98p
13:47 1,402 @ 250.00p
13:47 500 @ 250.00p
13:47 242 @ 250.20p
13:47 489 @ 250.20p

JUP Key Personnel

CEO Andrew Formica
CFO Wayne Mepham

Top of Page