Just Group PLC (LSE:JUST) shares soared around 6% on Wednesday after receiving a vote of confidence from US investment bank, JP Morgan.
The broker thinks the market is overlooking the life insurer which "in our view, is the most focused way to play the strong growth potential of the UK pension risk transfer market".
"In spite of its low market cap, Just is clearly punching above its weight and with market share of around 10% in 2022 is now one of the major insurers in this market, with balance sheet strength and Solvency II capital that is comparable with peers," the bank said.
JPM feels investor concerns about its mono-line business model and asset risks are more than priced in.
It forecasts >20% CAGR new business sales growth to 2025 and similarly strong growth in underlying profit.
The bank has lifted its price target on Just Group to 125p from 115p and reiterated an 'overweight' rating.