Jupiter Fund Management stock price upgraded by City broker
Jupiter Fund Management has been upgraded from a Hold to an Add by City broker Peel Hunt, with analysts praising the group’s cost-cutting programme.
The asset management giant’s stock price target was increased from 76p to 90p by the broker, sending its stock price soaring nine per cent to 89p.
Peel Hunt praised “early signs that the business is returning to sustainable profit growth,” causing a material uplift in its earnings forecast for Jupiter.
Last week, Deutsche Bank also upgraded Jupiter’s stock price target from 65p to 80p, but kept the rating for the fund management giant as a Hold.
Estimates of the group’s assets under management from Deutsche Bank currently sit at £45.3bn, a £1bn jump from its last trading update in March.
With the backdrop of recovering markets since the start of the quarter, Jupiter’s share price has rallied over the last month, rising more than 25 per cent in the last month.
Cost-cutting measures
In a stock exchange announcement last week, the fund management group said it had identified a further £15m to be saved as part of its cost cutting programme, bringing its expected savings for 2025 to £110m.
“Given the level of cash and investments held, or the surplus capital position, Jupiter’s valuation multiples remain at low levels,” said Peel Hunt analysts Stuart Duncan and Stephen Payne.
Jupiter currently sits at a price to earnings ratio of only 11 times, and an expected value to assets under management ratio of just 0.5 per cent, according to the broker’s calculations.
The group is set to release its half-yearly results on 25 July, but said during its cost-cutting announcement that “net flows since the end of the first quarter have been broadly flat”.
This would be a significant turnaround for the asset manager, which has suffered billions in investor withdrawals in recent years.
In the first quarter of 2025, investors pulled £500m from Jupiter, which was accompanied by another £500m in market losses.