Deutsche Bank upgrades 3i Group to 'buy'
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Pointing to 3i’s investment in European discount retail chain Action, DB said there was a "compelling" case for continued strong EBITDA growth in the long term.
The bank also highlighted Action’s positive customer proposition and operating model, proven store rollout capabilities and continued growth in sales per store.
DB said it expects cash distributions covering 3i’s carried value within nine years.
Across the rest of 3i’s portfolio, the bank said there is potential for return on investments to be "steady" in Infrastructure and Scandlines.
At 1545 GMT, the shares were up 4.6% at 3,492p.