Citi has upgraded Bridgepoint Group PLC (LSE:BPT) to ‘buy’ from ‘neutral’, arguing that the private equity firm’s recent share price weakness presents an attractive buying opportunity.
The bank has set a new price target of £4.10, implying a potential return of around 30%.
Bridgepoint’s stock has underperformed the sector this year despite what Citi describes as a “highly constructive” full-year 2024 update.
The bank has now raised its forecasts for assets under management and fee-related earnings, expecting the company to deliver growth in line with its peers.
It also sees potential catalysts ahead, including the activation of ECP Fund VI and a new partnership with investment giant KKR.
Despite these positive trends, Bridgepoint shares continue to trade at a discount to historical levels.
Citi believes this is unwarranted and sees scope for a re-rating as investors recognise the firm’s strong operating momentum and improving outlook.
In afternoon trading, the shares were up 1.3p at 334.8p.