3i Group plc: Strong Buy Rating Backed by Action’s Performance and Strategic Growth Plans

J.P. Morgan analyst Christopher Brown has maintained their bullish stance on III stock, giving a Buy rating on March 17.

Christopher Brown has given his Buy rating due to a combination of factors, including the strong performance of 3i Group’s key asset, Action. Despite a temporary setback from an ERP system change, Action’s sales have surpassed expectations, with a 2.8% increase over estimates. The company has resolved these issues and projects a promising outlook for 2025, with expectations for like-for-like sales growth in the mid- to high-single digits.
Furthermore, 3i Group’s strategic plans for Action include significant store expansion and improved EBITDA margins, which align with Brown’s positive outlook. Additionally, the broader private equity portfolio is showing resilience and progress, even amid challenging macroeconomic and geopolitical conditions. These factors, combined with cost-saving measures and a solid dividend strategy, underpin Brown’s optimistic view and Buy rating for 3i Group plc.

In another report released on March 17, Citi also maintained a Buy rating on the stock with a £46.70 price target.