3i Group PLC (LSE:III) shares have been one of the best on the FTSE 100 this year and analysts at RBC Capital said they still see good value.
The shares are up over 70% this year, over 200% over five years and 900% over the decade, a compound annual growth of 18% over those 10 years, with a total shareholder return of at least 10% for nine of the last 11 years.
"A significant proportion of this has been driven by Action [a 3i portfolio company and European retailer], and we don't foresee a change near-term," said analyst Manjari Dhar at RBC, initiating coverage of the investment trust.
He expects growth in the discount sector plus a "strong and proven" store expansion strategy to drive multiyear growth for the Benelux non-food discount retailer, which represents around half the size of 3i's portfolio.
"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," the analyst said, initiating with an 'outperform' rating and 2,550p target price compared to the last closing price of 2,258p.