By Iain Gilbert
Date: Monday 04 Nov 2024
LONDON (ShareCast) - (Sharecast News) - Analysts at RBC Capital Markets downgraded 3i Group from 'outperform' to 'sector perform' on Monday, citing valuation grounds.
RBC said it views 3i Group as a "best-in-class business", with a "conservative but successful" model and a strong management team.
"This is evidenced by III's outperformance in the last few years, despite challenging macro backdrop," said RBC, which has a 3,425.0p target price on the stock.
The Canadian bank stated a "good chunk" of this outperformance had been driven by Action, which it views as "a very high-quality retailer".
However, RBC noted that 3i's share price has risen more than 140% in the last three years, and it now views the shares as more fairly valued.
Reporting by Iain Gilbert at Sharecast.com
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