LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets initiated coverage of private equity firm 3i Group on Wednesday with an 'outperform' rating and 2,550p price target.
It noted that 3i has a healthy track record on total shareholder return, with a compound annual growth rate of 18% over the last 10 years.

"A significant proportion of this has been driven by Action, and we don't foresee a change near-term," RBC said.

"We expect growth in the discount segment plus a strong and proven store expansion strategy to drive multi-year growth for Action.

"We still see good value in 3i at current levels, given its growth and strong balance sheet, differentiated long-term strategy and defensive asset allocation. Hence, we initiate at outperform."

At 0920 GMT, 3i shares were up 1.6% at 2,293p.

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