Broker tips: FD Technologies, Equals Group, Jupiter Fund Management

The analysts of Berenberg downgraded FD Technologies from ‘hold’ to ‘sell’ on Wednesday and cut its target price on the stock from 2,200.0p to 1,600.0p, citing ‘misplaced optimism’.

Berenberg said that in his view FD Technologies was a classic case of a valuation unsupported by company fundamentals, noting that he believes investors are overestimating the growth opportunity of the Kx and MRP platforms of the company, as both have “a checkered track record” of operating in difficult conditions. competitive landscapes.

The German bank said this backdrop also limits the potential impact on growth of FD’s recent increase in investments, creating long-term doubt on margins, while limited growth in software-based Kx and MRP businesses also undermined the stock’s valuation.

“FD is trading at 65.0 times full year 2023 price/earnings for what remains a 65% services based business with earnings below 10% before interest and tax margins and limited returns on capital “, Berenberg said.

The analysts of Canaccord Genuity increased their price target on a diversified financial company Equal group from 99.0p to 106.0p on Wednesday following a “positive trade update” from the company.

Canaccord said the early start to Equals’ 2022 calendar year would have continued the “positive trend” that accelerated in 2021 and appears investments made to reposition the company toward a more business-to-business offering “have paid off.” successful”. .

As a result, the Canadian bank has raised its revenue forecast for Equals in 2021 by 3%, in line with the release forecast and, as a result, now sees earnings per share and revenue estimates increase by 8%.

“We note the comments regarding increased sales and marketing spending, but overall we see upside risk to our new CY22E guidance,” said Canaccord, which also reiterated its “buy” rating. on the title.

JPMorgan Cazenove lowered its position on Jupiter Fund Management Wednesday from “neutral” to “overweight” as it reviewed European asset managers.

JPM has downgraded Jupiter following its channel checks indicating that the net outflow has continued into the fourth quarter of 2021, which it estimates at around £900.0m, with limited visibility at one point. inflection.

“Jupiter’s shares are cheap and potential bid speculation could limit absolute downside risk, but conversely, we believe an inflection in flows is needed for a revaluation.”

JPM also cut its price target on Jupiter to 290.0p from 345.0p.

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