JPMorgan maintains Overweight rating on Bridgepoint stock amid strong growth outlook

Published 07/08/2025, 09:04
JPMorgan maintains Overweight rating on Bridgepoint stock amid strong growth outlook

Investing.com - JPMorgan has reiterated its Overweight rating and GBP4.24 price target on Bridgepoint Group PLC (LON:BPT) following the company’s H1 2025 results, citing improved exit momentum and strong fundraising progress.

The investment bank has updated its earnings forecasts for Bridgepoint, projecting a 10% increase in EPS for 2025, followed by a 6% decline in 2026, before rising again by 5% in 2027 and 7% in 2028. JPMorgan has raised its carried interest and investment income estimates by an average of 16% throughout its forecast period due to promising exit pipelines.

Bridgepoint’s ECP VI fund has already raised $2.5 billion year-to-date toward its $5 billion target, contributing to JPMorgan’s optimistic outlook despite faster tail-down of fee-paying AUM in older vintages. The bank expects significant acceleration in earnings growth between late 2025 and 2028, with 27% adjusted EPS CAGR and 20% Fee Related EBITDA CAGR.

JPMorgan believes the current valuation of 14.8x 2026E P/E fails to reflect Bridgepoint’s significant earnings growth potential. The analysis suggests the stock’s fundamentals should outweigh concerns about low liquidity and potential insider sales following July’s second lock-up expiry since IPO.

The firm maintains its GBP4.24 price target, representing substantial upside potential based on Bridgepoint’s strong business fundamentals and growth trajectory in private equity fundraising.

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