Jupiter Fund Management's stock rating has been elevated by a city-based broker.
Jupiter Fund Management boosts cost-cutting efforts, prompting price hike from Peel Hunt
In a move to bolster operational efficiency and reduce costs, Jupiter Fund Management has announced additional cost-saving measures amounting to £15 million per year. The asset management giant's stock price target has risen from 76p to 90p following this announcement, with a nine percent jump in its share price to 89p.
Peel Hunt analysts, Stuart Duncan and Stephen Payne, praised the group's cost-cutting programme, citing early signs of the business returning to sustainable profit growth. The increased earnings forecast for Jupiter is partly attributable to these cost-cutting efforts, according to Peel Hunt.
Last week, Deutsche Bank also upgraded Jupiter's stock price target from 65p to 80p yet maintained its rating for the fund management giant as Hold. Current estimates of the group's assets under management by Deutsche Bank stand at £45.3 billion, marking a £1 billion increase from its last trading update in March.
Over the past month, the recovering markets have seen Jupiter's share price rally significantly, surging more than 25 percent. Despite broadly flat net flows since the end of the first quarter, there are emerging signs of renewed momentum in the institutional channel.
Last week's update revealed that the fund management group had identified additional savings as part of its cost-cutting program, bringing the expected savings for 2025 to £110 million. This latest announcement brings anticipated savings for the same period to £105 million. Other financial projections for 2025 remain unchanged.
Jupiter aims to implement the new cost-saving measures by the end of 2026, as part of its strategic plan to improve financial performance. The company is expected to release its half-yearly results on July 25, during which it will provide updates on the progress toward its cost-saving targets.
The cost-cutting efforts initiated by Jupiter Fund Management have led to an upward revision of Peel Hunt's stock price target from 76p to 90p, as the increased earnings forecast for Jupiter is partly attributed to these cost-saving measures. In light of these financial adjustments, the business activities of Jupiter Fund Management, including investing and managing assets in various markets, may be influenced by these cost-saving measures and their impact on the company's future financial performance.
