3i Group (LON:III) Stock Gaps Up as Bullish Sentiment Builds

Shares in 3i Group (LON:III) experienced a significant surge this morning, climbing 3.65% as markets opened, propelled by a wave of positive analyst commentary and strategic asset considerations. The stock is now approaching a critical resistance level of 4,350p, a threshold that, if breached, could signal further upside.

The day's trading reflects growing investor confidence in the investment company. Year-to-date, the stock has already gained 18.5%, demonstrating strong underlying momentum. This upward trajectory is fueled by a combination of factors, including potential asset divestments, favourable analyst ratings, and robust financial performance.

Reports have surfaced indicating that 3i Group is contemplating the sale of certain assets, notably the French IT maintenance provider Evernex. Such a strategic move aligns with the company’s focus on optimizing its portfolio and unlocking capital for new investment opportunities. Markets often react positively to such streamlining efforts, viewing them as a sign of proactive management and a commitment to shareholder value.

Recent analyst upgrades have further bolstered sentiment. Bernstein initiated coverage on September 18, 2025, with an ‘Outperform' rating and a price target of 5,200p. Citi reiterated its ‘Buy' rating with a 5,000p price target on September 3, 2025. Earlier in the summer, on July 29, 2025, Morgan Stanley raised its price target to 4,998p, maintaining a ‘Buy' rating. These endorsements from reputable financial institutions underscore the perceived growth potential of 3i Group. The consistently positive outlooks from analysts are a significant driver of the current bullish sentiment.

3i Group's financial performance in the fiscal year ending March 31, 2025, provides a solid foundation for this optimism. The company reported a total return of £5.05 billion, representing a 25% return on opening shareholders' funds, an increase from 23% the previous year. Net asset value (NAV) per share also saw substantial growth, rising to 2,542p from 2,085p. The company declared a total dividend of 73.0p, including a proposed second payment of 42.5p, reflecting its commitment to returning value to shareholders. The private equity portfolio, particularly the Benelux-focused discount retailer Action, has been a significant contributor to this strong performance, generating a return of £4.55 billion.

The FTSE 100 index, within which 3i Group is a constituent, has demonstrated resilience, holding steady after recent record-setting sessions. Financial stocks, including 3i Group, have contributed to this stability, with the sector gaining 3.1%. The overall market context provides a supportive environment for 3i Group's share price appreciation, as broader economic confidence tends to lift all boats.

The convergence of strategic asset management, positive analyst assessments, robust financial results, and favorable market conditions has collectively fostered a bullish outlook for 3i Group. As the stock flirts with the 4,350p resistance level, markets will be closely watching to see if this momentum can be sustained, potentially setting the stage for further gains in the near term.