St James's Place PLC (LSE:STJ) topped the FTSE 100 risers on Friday, with shares up 4%, after JPMorgan raised its price target and reiterated its bullish stance on the wealth manager.
The US bank upgraded its target from 1,205p to 1,310p following an update to its earnings model, citing stronger-than-expected market performance and solid client inflows.
It now forecasts an 8–12% rise in underlying cash earnings per share for 2025 to 2027, underpinned by a 6% increase in assets under management (AUM).
The improved earnings outlook for the wealth manager is driven by higher AUM, translating into a 4–6% increase in net income.
With no change to cost assumptions, the benefit is magnified by operating leverage, boosting profit expectations.
JPMorgan said the group remains one of its top picks in the sector, noting that strong net flows over the past year signal robust client demand and market share gains in UK wealth management.
The bank acknowledged that upcoming repricing measures, due to take effect this summer, will weigh on short-term earnings, but added that this is already priced in by the market.
It expects investor focus to shift towards the company’s longer-term outlook, forecasting a 25% compound annual growth rate in earnings between 2026 and 2030.
St. James’s Place, which manages money for affluent UK clients, has faced scrutiny in recent years over its fee structure, but has continued to attract new assets and defend margins.
With Friday’s gains, the shares have recovered some of the ground lost earlier in the year and are now trading at their highest level since February.
JPMorgan’s update appears to have reinforced confidence in the firm’s ability to deliver sustainable long-term growth, even as near-term earnings face some pressure.
The stock rose 42p to 1,113p.