St James's Place PLC (LSE:STJ) has received a meaty upgrade following its results this week, with JP Morgan indicating it sees potential for the share price to rally up to 987p.
It remains its top pick within European platforms/wealth managers, with some 40% upside to the current valuation said the US bank.
“In particular, we believe that the recovery in flows recorded in the second quarter demonstrates the remarkable resilience of St. James’s Place Partnership, despite the unprecedented headwinds of the past year.
“We believe that this derives from the strength of the personal relationship between advisers and clients, as well as from St. James’s Place’s brand recognition.
JP Morgan expects to see a sharp recovery in cash earnings from 2027 onwards with around 45% of the underlying cash result expected in 2029 highly predictable.
“With the first half results, we believe that management successfully addressed many of the concerns that were on investors’ minds (including additional regulatory and provision-related risks) and removed a key constraint to the re-rating of the stock.”
Buy is the broker’s view. Shares were up 2.6% today at 702p.