Bruce Hamilton, an analyst from Morgan Stanley, maintained the Buy rating on 3i Group plc (III – Research Report). The associated price target remains the same with p4,940.00.
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Bruce Hamilton has given his Buy rating due to a combination of factors that highlight the strong performance and potential of 3i Group plc. One of the key drivers is the robust growth demonstrated by Action, a significant investment for 3i, which has shown impressive net sales and EBITDA figures. The company’s EBITDA margins have remained stable, and there is an expectation of further margin expansion, which adds to the positive outlook.
Additionally, the valuation of 3i’s stake in Action is favorable, with the company trading at a reasonable price-to-net-asset-value ratio. This, combined with a strong return on equity, underscores the investment’s attractiveness. Despite some market uncertainties, the overall health of 3i’s portfolio remains resilient, with strong growth in other areas such as Royal Sanders. These factors collectively support Bruce Hamilton’s Buy rating for 3i Group plc.
In another report released on May 2, Barclays also maintained a Buy rating on the stock with a p4,580.00 price target.