Berenberg sees JTC shares growth potential after strong interim results By Investing.com

On Tuesday, Berenberg raised its price target on JTC Plc (JTC:LN) shares to £14.00, up from the previous target of £13.00, while maintaining a Buy rating on the stock. This adjustment follows the release of JTC’s interim results, showcasing a robust performance for the year’s first half.

The financial services firm reported a year-over-year revenue increase of 21.1% to £147.1 million, surpassing its own upgraded guidance for net revenue growth, which was set at over 10% per annum. The company’s net organic revenue growth notably achieved a 12.5% increase.

JTC’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose by 22.3% year-over-year to £49.1 million, with a slight margin improvement from 33.1% to 33.4%.

A strong cash conversion rate of 104% further bolstered the positive financial outcomes. Additionally, JTC reported a record in new business wins, totaling £18.8 million, marking an approximate 29% increase. Client attrition rates continued to decline, now at just 4.8%.

Berenberg’s updated forecasts and price target take into account the recent acquisition of Citi Trust. The firm’s analysis suggests that at a 21x FY25 price-to-earnings (P/E) ratio and a 17x FY26 P/E ratio, JTC presents a compelling investment opportunity. The firm’s evaluation indicates confidence in JTC’s potential to continue its growth trajectory and outperform expectations.

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