Pantheon International PLC (LSE:PIN) results highlight that shares are currently trading at a 34% discount to the latest net asset value, which analysts at Stifel think is "attractive", reiterating a 'buy' recommendation.
The shares are currently trading at 317p, while the latest NAV was 477p as at the end of December.
"We think this is attractive for a portfolio which is seeing solid earnings growth and has a maturing portfolio with scope for continued realisations," said Stifel's Iain Scouller.
Today's half-year numbers revealed cash inflows from realisations remained at a significant level, £112 million, equivalent to 9% of opening NAV.
The results also provided more evidence that the private equity portfolio is "well diversified" by number of companies and industry sectors, Scouller added, while earnings at underlying companies continued to grow well at 18% on average over the past year.
On the portfolio's diversification, Scouller also noted that the largest investment, Dutch retailer Action (pictured), accounts for 1.2% of NAV, so "there is no material company-specific risk".
NAV announced in the results was up from 462.4p at the end of May, though this was pre-announced as Pantheon publishes monthly NAVs.
"The performance attribution is useful and indicates the key driver of returns during the period was the tender and share buybacks, which added +17.5p or +3.8% to NAV," Scouller said, with other factors being valuation gains of 6.4p, investment income of 1.8p, and offset by a 7.5p swing from forex and 4.1p from expenses and taxes.
Scouller said Pantheon appeared to have slowed its rate of new commitments which totalled £15 million, whilst outstanding commitments totalled 33% of NAV.
Stifel's "fair value" for the shares is 382p.