Jupiter Fund management (LSE: JuP) more than 10 % shares in trading today (July 10), and payment FTSE 250 Share to their highest fresh levels for 52 weeks. Nevertheless, the price ratio to the company (P/E) of the company is 8.09, less than the standard of fair value of 10 I use when choosing the stocks. Here is the reason for mobilizing the arrow and why I think it can continue to move higher.

The cause of the height

The big news that caused a jump today was the confirmation of the acquisition of CCLA for 100 million pounds. CCLA is the largest asset manager in the UK focuses on the service of non -profit organizations. This means that managers take care of the charities and religious organizations.

CCLA currently runs about 15 billion pounds of management assets. This is the main measure that companies view in this sector, as the fees they receive depend on the amount that is managed. Jupiter’s reward is that he is currently looking for 44.3 billion pounds. Thus, the volume of money that is added from this step is large.

CEO Matthew Bezley noticed another benefit to this deal. He said It opens a new client segment for us, which expands our attractiveness to a group of charitable and religious institutions, whether in the United Kingdom or internationalTo take advantage of a customer base different from goals, usually means that there is no conflict of current customers.

It is still seized with less than its value

During the past year, the stock now increased by 33 %. Regardless of this step today, work has benefited from stronger financial results. This included the highest basic margins, along with the arrow’s profits and net income numbers that topped estimates.

However, based on the current share price, the P/E ratio indicates that there is an additional field to move up. Compared, competitors like Saint James place (16.55) and Asset Asset Management (14.65) has higher proportions. If you are dealing with the 15th P/E ratio for the next year for Jupiter and I assume that the arrow profit remains as it is, then this means that the stock price must increase by 84 %!

This is not guaranteed. The company has its associated risks, such as relying on the managers of the star boxes. Last year, the departure of Bin Wittour witnessed that billions of dollars moved from Jupiter, highlighting the dependence on good artists loyal to the company.

Moreover, we will have to wait and see how good integration with CCLA. Although it should be a big victory, there may be a short -term headache to join together.

Even with these concerns, I think the company is in a good place today, and the future looks bright. Looking at the evaluation measures that I went through, I seriously think about buying the shares to add them to my wallet.