Broker tips: Jupiter Fund Management, BP

Canaccord Genuity has downgraded Jupiter Fund Management from 'buy' to 'hold' and more than halved its target price on the stock, saying that rising competitive pressures are exacerbating ongoing market challenges.

The broker slashed its target price from 168p to just 70p for the stock, which was up 5.6% at 84.1p on Thursday morning.

"Previously we identified scope for optimism with respect to Jupiter, led by the stabilisation of quarterly retail net outflows (albeit no obvious near-term prospect of net inflows), and the positive momentum in the institutional channel. However, we now see a challenged earnings outlook," Canaccord said in a research note.

Berenberg has lifted its target price for oil titan BP after this week's third-quarter results, but kept a 'hold' rating, saying it sees more attractive investments elsewhere in the sector.

However, operating cash flow was strong at $8.75bn, up from $8.29bn, while net debt fell to $22.3bn from $23.7bn three months earlier.

"Cash flow was helped by working capital in the quarter, but management retains its focus on improving the balance sheet and credit rating, which could put some downward pressure on shareholder returns if the environment moderates into 2024," the broker said.

Berenberg has cut its earnings forecasts for 2023 by 7% due to the weak result in the Gas division, but has lifted its estimates for the next two years by 4% and 7%, respectively, due to stronger expected oil and downstream results.