3i Group plc (LON:III) got a boost on Tuesday after Morgan Stanley upgraded its rating for the firm to ‘overweight’ from ‘equal-weight’ in a review of European investment firms.
The US bank also hiked its target price for the FTSE 100-listed stock to 1,060p from 940p, with the shares currently changing hands at 940.20p each, up 2.5% on Monday’s close.
In the note to clients, Morgan Stanley’s analysts said: “3i offers compelling upside, and we upgrade.”
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Elsewhere in the review, Morgan Stanley also raised target prices for two other UK blue-chip fund managers, Standard Life Aberdeen PLC (LON:SLA) and Schroders PLC (LON:SDR), as well as for FTSE 250-listed hedge fund firm Man Group PLC (LON:EMG).
The target for Standard Life Aberdeen was upped to 247p from 230p, with an ‘underweight’ rating reiterated; Schroders’ target was increased to 2,720p from 2,.610p, also with a retained ‘underweight’ stance; and Man Group’s target price was raised to 161p from 156p, with an ‘overweight’ stance maintained.
Standard Life shares were up 3.4% at 274.40p; Schroders added 3.1% at 3.040p; and Man Group rose 2.6% at 33.70p. Investment stocks were also lifted by the market rally so far this week.