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Investing.com - JPMorgan has upgraded CVC Capital Partners (WA:CPAP) plc ( AMS (VIE:AMS2):CVC) from Neutral to Overweight and raised its price target to €20.60 from €16.90, representing a 22% increase.
The upgrade follows a share price decline after tariff announcements, which JPMorgan believes has created an investment opportunity due to significant divergences in valuation multiples across the sector.
JPMorgan’s analysis indicates considerable upside potential for CVC shares, even when applying more conservative estimates than consensus and using a lower fee-related earnings multiple in its valuation compared to peers like EQT (ST:EQTAB) and Partners.
The lower multiple accounts for reduced liquidity in CVC shares and a more uneven fee-related earnings growth profile compared to industry peers.
JPMorgan expects an improvement in exit volumes and upcoming fundraising launches, particularly in Infrastructure, to support a re-rating of CVC shares closer to its peers’ valuations.
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