3i Group PLC (LSE:III) offers a compelling investment story, according to analysts at Deutsche Bank who upgraded their target price to 4,600p, from 4,500p.
The German bank also repeated a 'buy' recommendation for the investment group.
In a note, Deutsche highlighted new insights gleaned from 3i's recent capital markets day (CMD), including upbeat commentary around a portfolio that features investments in WaterWipes and OMS, along with exits from MPM and MAIT.
“3i delivered a compelling CMD, sharing insight into its investment thesis behind two of its newest portfolio companies," analyst Alison Lygo said.
"The clarity of the investment thesis and how the targeted choice of portfolio companies within sectors 3i has depth of understanding stood out for us.”
Specifically, the analyst explained that 3i is investing in areas of structural growth.
In consumer, it is backing natural, premium-positioned brands with potential for global reach. In tech, it is focused on businesses with recurring revenues in markets where outsourcing complex processes is a growing trend.
3i shares, up 2.3%, changing hands at 4,037p.