London, Jan 14, 2026, 09:18 GMT — Regular session
- 3i shares climbed roughly 1% in early trading, bouncing back from a dip the session before.
- Deutsche Bank lowered its price target to 4,200p but maintained a “buy” rating.
- Investors are focused on hints of rate cuts and await 3i’s performance update due later this month.
Shares of 3i Group plc (III.L) ticked up 1% to 3,093 pence by 0918 GMT Wednesday. Deutsche Bank cut its price target to 4,200 pence from 4,300 but maintained a “buy” rating, MarketBeat reported. The stock remains far from its 52-week peak of 4,497 pence set in October. (Google)
This matters because 3i has grown into a popular single-stock entry point for private equity, and investor sentiment can shift quickly once questions arise over portfolio valuations and exit strategies. In its latest results, 3i reported that its major stake in Action “continued to trade strongly.” CEO Simon Borrows added that “Action’s new store expansion programme is on track for another record year.” (3i)
Expectations for rates are moving lower in UK markets. Bank of England policymaker Alan Taylor commented that “Interest rates should continue on a downward path” since inflation is expected to hover near the central bank’s 2% goal. (Reuters)
Overnight, investors reacted to U.S. inflation data showing core CPI up 2.6% year-on-year in December, coming in below expectations. That result bolstered market confidence the Federal Reserve will keep its benchmark rate steady at 3.5%-3.75% during the Jan. 27-28 meeting, according to a Reuters report. (Reuters)
3i’s shares dropped 2.05% Tuesday, closing at 30.63 pounds, underperforming the broader market. Trading volume ran above the 50-day average, according to MarketWatch data. (MarketWatch)
For traders, the dynamic is straightforward: lower yields can boost the prices investors assign to private assets, yet the portfolio must still prove it can generate cash and justify valuation marks. Any sign of weaker trading at Action, or more challenging financing for buyouts, usually hits the share price right away.
Here’s the snag: 3i is trading roughly 10% above its estimated net asset value (NAV) — that’s assets minus liabilities — according to Hargreaves Lansdown. (Hargreaves Lansdown) That leaves little wiggle room if the valuation update stumbles or if the company takes a more cautious stance on exits and investment pace.
The next checkpoint is coming up fast. 3i’s financial calendar lists a third-quarter update set for Jan. 29. Investors will be watching closely for clues on Action’s trading, cash flow, and how the group is allocating capital. (3i)
