On Friday, JPMorgan (NYSE:JPM) increased the price target for Bridgepoint Group PLC (LON:BPTB) (BPT:LN) to £3.92, up from the previous target of £3.58. The firm maintained its Overweight rating on the stock. The analyst at JPMorgan cited several key reasons for the positive outlook on Bridgepoint, including a diversified business model and the potential for double-digit growth in earnings per share (EPS) and fee-related earnings (FRE) over the next three years.
The upgrade comes ahead of Bridgepoint's Capital Markets Day scheduled for October 24, which JPMorgan has on its Positive Catalyst Watch. The event is expected to offer investors greater visibility into Bridgepoint's growth drivers and could potentially lead to a further re-rating of the company's shares.
Bridgepoint has expanded its operations to include Private Equity, Credit, and Infrastructure, bolstering its business model. This expansion was notably supported by the completion of the acquisition of ECP, which has positioned the company to capitalize on various market opportunities.
The JPMorgan analyst highlighted Bridgepoint's attractive valuation, particularly based on the 2026 earnings estimates. These estimates take into account the expected activation of the next flagship Bridgepoint Europe VIII fund.
The analyst concluded with optimism about the upcoming Capital Markets Day, anticipating that it will underscore the company's growth drivers and enhance the equity story for investors, potentially leading to an increase in the stock's value.
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