Canaccord Genuity downgrades Jupiter Fund Management to 'hold'

Canaccord Genuity said the asset managers' peer group had "re-rated meaningfully" since the beginning of the fourth quarter of 2022, helped by higher market levels, with average share prices up 36%.

The Canadian bank highlighted that Jupiter had outperformed over that period, with the share price 58% higher.

"The company will report FY22 results on 24th February, when we expect further clarity to be provided on the cost outlook for FY23, following the update provided in October by the new CEO which confirmed a circa 15% headcount reduction," said Canaccord, which expects to see that "a positive surprise" on costs and/or net flows will be required to drive a further re-rating.

Hence, it believes further upside to be limited in the short term following the strong share price run but still hiked its target price from 106.0p to 142.0p.

Reporting by Iain Gilbert at Sharecast.com