JP Morgan says selloff in Intermediate Capital Group is 'overdone'

Analysts at JP Morgan reiterated their 'overweight' recommendation for shares of Intermediate Capital Group, telling clients that the current share price was pricing "unrealistic downside scenarios".

Even if the global alternative asset manager's provisions reached the levels last seen in 2009, that had already been "more than factored into the share price".

The analysts also flagged the fact that the firm's gearing was lower and the fees from its fund management company higher than in 2009.

So, after approximately more than 25% underperformance versus its European asset management peers, JP Morgan said that the selloff was "overdone".

"The share price is either giving zero value to the Investment Company or no future growth in the Fund Management Company, both scenarios which we do not view as plausible."