RBC Capital Markets cuts price target on JTC

RBC stated it had made minor changes to forecasts on the back of the group's in-line full-year and opted to lower its target price in order to reflect higher discount rates.

"JTC continues to grow strongly, although is becoming a more diverse outsourcing business, whilst ROIC has been impacted by recent M&A," said the Canadian bank, which reiterated its 'sector perform' rating on the stock.

"We remain positive on the structural growth potential, as well as the high margins and strong cash generation. In our view, JTC is well positioned given its unique ownership model and jurisdictional reach. We continue to believe consolidation will be a major theme and expect JTC to continue to play its part, although M&A prices, especially in the alternatives segment, remain high and there are risks in terms of integration and overpayment. We continue to see the shares as fair value at these levels."

Reporting by Iain Gilbert at Sharecast.com