Jefferies lifts JTC price target

Jefferies upped its price target on JTC to 875p from 860p on Friday as it said the proposed acquisition of South Dakota Trust Company and associated placing have prompted it to revise its forecasts upwards.

"The deal is in line with JTC's strategy of organic and acquisitive growth and addresses its largest growth market: the USA," it said.

"Integration of SDTC should be relatively smooth given the long relationship between the companies and JTC's highly experienced integration team. We expect more acquisitions in due course, possibly even this year."

Jefferies noted that on a proforma basis, the deal adds around £30m of revenue and £12m of FY24 adjusted EBITDA, but said it expects there will also be revenue synergies.

It has a ‘buy’ rating on JTC.

"We are buyers of sticky revenues, stable margins and a big growth opportunity," Jefferies said.