No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Citi downgraded its stance on alternative asset fund management group Bridgepoint on Wednesday to 'neutral' as it said there are limited near-term catalysts and the shares are up 80% over the past year.
The bank said it was constructive on Bridgepoint's medium-term growth prospects and sees notable upside to consensus earnings from FY26E.
However, a lack of near-term growth and/or catalysts and a need to demonstrate cost control and raising SMAs mean it sees less pressing need for investors to buy the shares.
"The recent decisions to stop the SBB (following rerating) and sell previously locked-up shares at an 11% discount within a relatively short period were also weak signals, in our view," Citi said.
"After the capital markets day we increase our target price to 3.50 but downgrade rating to neutral."
Citi said it believes the shares could become more attractive as we progress through the next fundraising cycle and approach BE VIII activation, which is expected mid-FY26.
At 0850 GMT, the shares were down 1.8% at 320p.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.
