Analysts have raised their price target for 3i Group from £45.18 to £46.48, citing strong growth prospects for the company’s portfolio as well as robust net asset value compounding potential.
Analyst Commentary
Bullish analysts have highlighted several positive factors underpinning 3i Group's outlook, citing both the strength and potential of its core assets as well as the robust trajectory of its net asset value growth.
Bullish Takeaways- 3i Group's ownership in a leading European discount variety retailer is viewed as an attractive avenue for substantial quality growth.
- The company is projected to achieve annual net asset value per share compounding of up to 20% through fiscal 2028, signaling strong long-term performance potential.
- Recent upward price target revisions reflect growing confidence in 3i's ability to deliver consistent value creation for shareholders.
- Analysts have named 3i Group a top pick in the sector based on its execution track record and compelling growth story.
Valuation Changes
- Fair Value: Increased from £45.18 to £46.48, indicating a moderate rise in analyst valuation expectations.
- Discount Rate: Increased slightly from 8.23% to 8.30%, suggesting a marginal change in perceived risk.
- Revenue Growth: Declined from 14.86% to 14.11%, reflecting a slightly more conservative outlook for top-line expansion.
- Net Profit Margin: Decreased from 101.38% to 97.63%, indicating a modest drop in projected profitability ratios.
- Future P/E: Increased from 6.99x to 7.63x, signaling a higher earnings multiple being assigned by analysts to 3i Group's future profits.
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