Here’s Why 3i Group Shares Surged

3i Group (LON: III) shares have jumped more than 9% on Thursday after the international investment manager reported steady sales growth and expanding store numbers at Action, the European discount retailer that drives the bulk of its portfolio value.

In an update ahead of the company’s Annual General Meeting, 3i said Chief Executive Simon Borrows is set to reveal that Action had achieved like-for-like sales growth of 3.3% year to date through the end of week 25, with 105 new store openings on track with the company’s 2026 expansion plans.

Borrows added that Action “is set for a good quarter of profit growth” and held a cash balance of €699 million as of June 21, following the payment of a €450 million dividend to all shareholders in May.

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3i said the remainder of its private equity portfolio “continues to demonstrate good momentum in line with our expectations.”

The update offered reassurance to investors who have watched 3i’s shares come under pressure in since late last year.

Analysts have shown concern over Action’s growth trajectory. In January, RBC Capital downgraded the stock to Underperform, with analyst Manjari Dhar warning that Action is at risk of moving into a period of diminishing returns.

Deutsche Bank and Citi also trimmed their price targets on 3i in recent months, though both retain Buy ratings on the shares, with Deutsche Bank’s target currently at 3,527 pence and Citi’s at 4,280 pence.