No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Deutsche Bank lifted its price target on Jupiter Fund Management on Friday to 110p from 90p after it agreed to buy CCLA - the UK's largest asset manager focused on serving non-profit organisations - for 100m.
The bank said it has updated its forecast and price target to reflect the "financially and strategically sensible deal".
"Assuming the material cost synergies targeted can be realised, and without significant revenue dissynergy (which looks plausible in this case, given limited client/product overlap), we consider the acquisition inexpensive and a sensible use of part of the current substantial surplus capital," DB said.
"In addition to the financial attractions, we believe the deal will improve diversification (and therefore resilience) of the group across both client (notably adding non-profit and local authority clients) and product (notably multi-asset, money market and property), and increase scale."
In turn, this should help to underpin a more stable group operating profit trajectory and consequently an improved/more resilient ordinary dividend outlook, the bank added.
DB rates the shares at 'hold'.
At 0935 BST, Jupiter shares were up 1.5% at 121.80p.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.