LONDON (ShareCast) - (Sharecast News) - Deutsche Bank lifted its price target on Jupiter Fund Management on Friday to 110p from 90p after it agreed to buy CCLA - the UK's largest asset manager focused on serving non-profit organisations - for £100m.
The bank said it has updated its forecast and price target to reflect the "financially and strategically sensible deal".

"Assuming the material cost synergies targeted can be realised, and without significant revenue dissynergy (which looks plausible in this case, given limited client/product overlap), we consider the acquisition inexpensive and a sensible use of part of the current substantial surplus capital," DB said.

"In addition to the financial attractions, we believe the deal will improve diversification (and therefore resilience) of the group across both client (notably adding non-profit and local authority clients) and product (notably multi-asset, money market and property), and increase scale."

In turn, this should help to underpin a more stable group operating profit trajectory and consequently an improved/more resilient ordinary dividend outlook, the bank added.

DB rates the shares at 'hold'.

At 0935 BST, Jupiter shares were up 1.5% at 121.80p.

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