With a focus on the low-carbon economy and ESG focused investment opportunities, JPMorgan Chase & Co’s (JPM) asset management unit J. P. Morgan Asset Management, has acquired Campbell Global. The acquisition is expected to close in Q3.
Oregon-based Campbell Global is a forest management and timberland investing company. It has AUM of $5.3 billion and oversees 1.7 million acres globally.
The acquisition is expected to make J. P. Morgan a key player for thriving forests worldwide, and the company plans to be an active player in the developing carbon offset markets.
George Gatch, CEO of J. P. Morgan Asset Management, said, “Investing in timberland, on behalf of institutional and high net worth individuals, will allow us to apply our expertise in managing real assets to forests, which are a natural solution to many of the world’s climate, biodiversity, and social challenges.” (See JPMorgan stock chart on TipRanks)
Anton Pil, Global Head of J. P. Morgan Global Alternatives, added, “Acquiring Campbell Global provides us with an opportunity to strengthen and diversify our ESG focus, including building a robust carbon sequestration platform.”
These investment offerings will be a part of J.P. Morgan’s Global Alternatives franchise, which has AUM of $168 billion.
On June 8, Wells Fargo analyst Mike Mayo reiterated a Buy rating on the stock and increased the price target to $200 (33% upside potential) from $195. Mayo estimates the company’s loan loss reserves that return 90% back to pre COVID-19 levels by the end of 2021.
Based on 10 Buys, 4 Holds, and 1 Sell, consensus on the Street is a Moderate Buy. The average JPMorgan Chase analyst price target of $171 implies 13.7% upside potential. Shares are up 55.5% over the past year.