Citi upgrades Bridgepoint to 'buy'

Bridgepoint gained on Wednesday after an upgrade to ‘buy’ from ‘neutral’ at Citi, which said the risk-reward looks attractive following recent underperformance.

Citi, which lifted the price target to 410p from 390p, said: "Bridgepoint shares have lagged peers and the sector YTD, which is a surprise, particularly following what in our view was a highly constructive FY24 update."

The bank cited strong operating trends and said it expects Bridgepoint to deliver fee-related earnings growth similar to peers, but despite this the shares are trading at an above-average discount versus history, which seems "unwarranted".

At 1235 GMT, the shares were up 3.3% at 331.40p.