Jupiter Fund Management (JUP)

Sector:

Financials

Index:

FTSE 250

233.20p
   
  • Change Today:
    -3.20p
  • 52 Week High: 432.00p
  • 52 Week Low: 164.70p
  • Currency: UK Pounds
  • Shares Issued: 447.30m
  • Volume: 624,996
  • Market Cap: £1,043.10m

Berenberg downgrades Jupiter Fund Management on challenging markets, net outflows

By Alexander Bueso

Date: Friday 06 Mar 2020

LONDON (ShareCast) - (Sharecast News) - Berenberg downgraded its view on shares of Jupiter Fund Management in light of the increasingly volatile and difficult market backdrop, which would only make it harder for the firm to address the multiple strategic challenges that it was facing.
Among those, in a research note sent to clients, analysts Chris Turner and Panos Ellinas cited sustained net outflows, the increasing concentration of distribution channels in the UK, focus on retail (89%) and high exposure to equities (57%).

Thus far in the first quarter, they estimated that the outfit, which on 17 February had acquired Merian Global Investors, had already experienced ?2.2bn of net outflows from its combined mutual fund products.

The bulk of outflows came from Merian, but Jupiter had also lost ?700m, on top of the ?4.5bn of outflows seen in 2019, with the latter due in part to a change in manager in Europe.

And during the previous year, higher values for its asset under management had acted as an offset, but that would now be harder.

Would Merian be earnings accretive for Jupiter? Forget it, the analysts said, pointing to declines in financial markets and outflows.

Even if one assumed a benign market backdrop and a steady improvement in flows, the shares' 10.0% discount to the sector did not accurately reflect their higher risk.

And given the volatility in markets, Jupiter's shares might overshoot to the downside, they added.

Applying a price-to-earnings multiple of 9.1 to their 2021 earnings estimates yielded a target price of 262.0p for the stock, down from 367.0p previously.

The broker also lowered its recommendation on the shares from 'hold' to 'sell'.



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JUP Market Data

Currency UK Pounds
Share Price 233.20p
Change Today -3.20p
% Change -1.35 %
52 Week High 432.00p
52 Week Low 164.70p
Volume 624,996
Shares Issued 447.30m
Market Cap £1,043.10m

JUP Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
80.35% above the market average80.35% above the market average80.35% above the market average80.35% above the market average80.35% above the market average
72.73% above the sector average72.73% above the sector average72.73% above the sector average72.73% above the sector average72.73% above the sector average
Price Trend
57.34% below the market average57.34% below the market average57.34% below the market average57.34% below the market average57.34% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average
Income
85.60% above the market average85.60% above the market average85.60% above the market average85.60% above the market average85.60% above the market average
75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average75.00% above the sector average
Growth
88.32% below the market average88.32% below the market average88.32% below the market average88.32% below the market average88.32% below the market average
90% below the sector average90% below the sector average90% below the sector average90% below the sector average90% below the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 5
Sell 1
Strong Sell 5
Total 13
sell
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 22-May-2020

Time Volume / Share Price
17:53 3,152 @ 233.00p
16:35 296,101 @ 233.20p
16:29 354 @ 232.80p
16:29 133 @ 232.80p
16:29 329 @ 232.80p

JUP Key Personnel

CEO Andrew Formica
CFO Wayne Mepham

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