Banking giant JPMorgan Chase (JPM) has struck a deal to buy U.K.-based digital wealth manager Nutmeg. It expects to close the transaction in the second half of 2021 but did not reveal the financial details of the deal.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
JPMorgan plans to launch a digital retail bank in the U.K. under the Chase brand later in the year, which it says Nutmeg will complement.
Nutmeg launched in 2012 and now serves more than 140,000 clients and manages more than £3.5 billion in assets. Its offerings include several types of ISAs, general investment accounts, and pensions.
“We are building Chase in the U.K. from scratch using the very latest technology and putting the customer’s experience at the heart of our offering, principles that Nutmeg shares with us,” commented CEO of international consumer, Sanoke Viswanathan, JPMorgan Chase.
Chase plans to initially offer current accounts, accessible through a mobile app. It says Nutmeg products will not be immediately available to Chase customers. But Chase and Nutmeg plan to integrate their products and teams over time, with JPMorgan saying that further product announcements will come in the months that follow. (See JPMorgan Chase stock chart on TipRanks).
BMO Capital analyst James Fotheringham reiterated a Hold rating on JPMorgan stock but lowered the price target to $139 from $140. The analyst’s new price target suggests 8.41% downside potential.
Fotheringham cut JPMorgan stock’s price target after the bank reduced its 2021 net interest income guidance to $52.5 billion from $55 billion. However, the analyst believes JPMorgan should be a long-term industry winner due to factors such as a strong balance sheet, digital investments, and earnings diversification.
Consensus among analysts is a Moderate Buy based on 10 Buys, 4 Holds, and 1 Sell. The JPMorgan Chase average analyst price target of $171 implies 12.68% upside potential to current levels.
JPM scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
Related News:
Amazon to Open Fulfillment Facility in Baton Rouge
BlackRock to Snap Up Baringa Partners’ Climate Change Scenario Model
Organon Completes Alydia Health Acquisition