JP Morgan has maintained its positive outlook on the publisher Future PLC (LSE:FUTR), setting a price target of 1,296p per share, despite the recent sudden announcement of the departure of chief executive Jon Steinberg.
His exit plan has raised concerns about the company’s future direction, as investors saw a sharp 19% drop in share price after the announcement.
Steinberg’s unexpected resignation has created uncertainty around Future’s growth plans, but JP Morgan believes the company still has significant value potential.
In a recent note, analyst Lara Simpson highlighted that Future’s assets remain undervalued, and the business has room to accelerate its strategic plans even during this leadership transition.
The US bank points to three key reasons why Future still holds promise.
First, Steinberg’s 12-month notice period gives the company time to push forward its 'Growth Acceleration Strategy', which has already shown progress both financially and strategically.
Secondly, Future’s board is actively exploring ways to boost the company’s value, with options on the table to optimise its portfolio.
And finally, a recent trading update indicated that the company is performing well operationally, supported by strong cash generation that positions it well going into 2025.
Although Steinberg’s departure is seen as a setback for many investors, JPM believes that at the current valuation of 4.3 times enterprise multiple for 2025, Future is still a worthwhile investment.
The bank suggests that corporate action—potential restructuring or asset sales—could help unlock further value and act as a catalyst for recovery.
Analyst Simpson acknowledges that rebuilding investor confidence after the CEO’s exit will take time, but argues that the underlying strength of Future’s business remains intact, offering significant upside despite the current leadership uncertainty.
In morning trading, Future shares were up 4.2% at 827.5p.