ShoreCap upgrades JTC to 'buy' after share price weakness

Analysts at ShoreCap upgraded their recommendation for shares of fund administration services outfit JTC to 'buy' in the wake of recent weakness in the share price.

In a research note sent to clients, they also updated their model to factor in the purchase of South Dakota Trust Company -its largest thus far - and the associated fundraising.

As a result, their estimate of 'fair value' for the shares was upped from 840.0p to 850.0p.

They also sounded a positive note on the SDTC acquisition.

In particular, they noted SDTC's 22-year track record of "consistent" growth, the fact that over 98% of its revenues were recurring from fixed fees, stronger EBITDA margin than JTC and "strong" cash conversion.