ShoreCap upgrades JTC to 'buy' after share price weakness

21st Jun 2023 16:03

(Sharecast News) - 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.