IP Group PLC (LSE:IPO) has seen a bullish write-up from European investment bank Berenberg, which pitches a 'Buy' rating and a 119p price target that implies around 70% upside to its current price.
Berenberg describes IP Group, the investor in early-stage companies, as an “underappreciated asset” whilst noting the current 40% discount to NAV despite improving portfolio valuations and a strong liquidity position.
"IP Group is effectively a listed venture-capital manager and fund, having relationships with more than 30 leading universities, from which it forms spin-outs based on IP, focusing on the therapeutics, med. tech, cleantech and technology sectors," Berenberg analyst Sam England said.
The analyst added: "Currently trading at a c40% discount to its last published NAV, we think the shares not only fail to reflect recent progress in IP Group’s holdings, but also the solid potential of the portfolio in the years ahead.
Central to the Berenberg valuation is IP Group’s exposure to Metsera, acquired by Pfizer for up to $10 billion last year. IP Group retains licensing rights over intellectual property underlying Metsera’s obesity programmes and values potential future royalties and milestones at £128.2 million, making them its largest portfolio asset.
Berenberg highlighted further progress since the acquisition, including Pfizer moving berobenatide into phase 2b and launching two additional phase 1 programmes incorporating IP Group technology.
The wider portfolio has also continued to attract funding, while IP Group finished 2025 with £211 million of cash and deposits after £68.1 million of realisations and £45.7 million of share buybacks.
