Jupiter Fund Management Shares (JUP) Hit New High As Analyst Doubles Target

Jupiter Fund Management's share price (LON:JUP) has hit a new 52-week high today at 126.20p, buoyed by a recent upgrade from Canaccord Genuity and a series of strategic initiatives aimed at revitalizing the asset manager.

Canaccord analyst Portia Patel revised her rating on Jupiter from “Sell” to “Hold,” doubling the price target to 120p from a previous 60p. This significant shift in sentiment reflects growing confidence in the company's ability to address its scale issues through aggressive cost-cutting measures and the deployment of surplus capital into accretive acquisitions. It warrants a mention however that even the doubled up target remains below the current price action, with JUP having added 45% since the start of the year.

A key catalyst for the renewed optimism is Jupiter's strategic acquisition of CCLA, a leading UK charity-focused asset manager, for £100 million. Announced on July 10, the deal is expected to close before the end of the year and will bring over £15 billion in assets under management (AUM) into Jupiter's fold.

This acquisition not only expands Jupiter's AUM but also diversifies its client base and enhances its profitability by integrating CCLA's specialized operations and relationships, including significant ties to the Church of England.

Furthermore, Jupiter is aggressively pursuing cost-saving initiatives. In May, the company identified an additional £15 million in annualized cost-saving opportunities, with full implementation targeted by the end of 2026. This initiative is part of a broader strategy to streamline operations and achieve a 70% cost-to-income ratio. As a result, expectations for non-compensation costs for 2025 have been revised downwards from £110 million to £105 million.

These efforts have not gone unnoticed by other analysts. Deutsche Bank recently increased its price target to 110p, maintaining a “Hold” rating. Earlier in the year, Investec upgraded Jupiter to “Buy,” citing encouraging AUM development and attractive cost-cutting measures.

While the recent performance and analyst upgrades are encouraging, challenges remain. Jupiter's beta of 1.42 indicates higher volatility than the market average, meaning the stock is likely to experience greater price swings than the broader market. The next few quarters will be crucial in determining whether Jupiter can sustain its current momentum and deliver on its ambitious turnaround plans.