JPMorgan upgrades Intermediate Capital Group to ‘overweight’

by | Nov 21, 2023

(Sharecast News) – JPMorgan Cazenove upgraded Intermediate Capital Group on Tuesday to ‘overweight’ from ‘neutral’ and lifted the price target to 1,882p from 1,738p as it said it was well positioned for earnings growth.
The bank said ICG surprised it positively last week, delivering a better-than-expected deployment in its private debt funds as well as better-than-expected net investment returns on its balance sheet portfolio.

“In addition, ICG has several new strategies on the pipeline, which we have now incorporated in our fund by fund detailed model,” it said.

JPM said that even though the shares are around 20% higher than when it initially relaunched its recommendation in March, it believes the still low price-to-earnings multiple, as well as earnings upgrades – mainly due to better net investment returns but also higher expected FMC earnings – leave more room for outperformance.

JPM lifted its pre-tax profit estimates by 36% in FY24E, 7% in FY25E, 15% in FY26E and 23% in FY27E.

At 0955 GMT, the shares were up 2.2% at 1,565p.

Related articles

Apple shares hit by downgrade on iPhone 15 disappointment

Apple shares hit by downgrade on iPhone 15 disappointment

(Sharecast News) - Apple futures were falling sharply on Tuesday morning after analysts at Barclays cut their rating on the stock from 'equal weight' to 'underweight'. The bank said iPhone 15 sales had been "lacklustre" and that strong growth in emerging markets...

Berenberg lifts target price for M&G but keeps ‘hold’

Berenberg lifts target price for M&G but keeps ‘hold’

(Sharecast News) - Berenberg has hiked its target price for life insurance group M&G from 208p to 225p after updating its estimates for the IFRS 17 accounting adjustments. "M&G is one of the few companies in the insurance sector that has benefited from the transition...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!