On Tuesday, JPMorgan made a bullish move on Bridgepoint Group PLC (BPT:LN), changing its stock rating from Neutral to Overweight and increasing the price target to GBP3.58 from GBP2.59.
This adjustment is based on the expectation of higher management fees contributing to a rise in the company's adjusted earnings per share (EPS) forecasts.
The firm's analysts project a 4% increase in Bridgepoint's adjusted EPS for 2025 and a substantial 15% rise for 2027. The new price target represents a 38% hike, with the valuation now set against the firm's 2026 forecasted fee-related earnings (FRE), aligning it with that of its peers.
Bridgepoint's current price-to-earnings (P/E) ratio for 2026 is estimated to be around 11 times, which JPMorgan considers an attractive entry point for investors. The optimistic outlook is driven by the potential for earnings growth and the possibility of a rerating in the stock's valuation.
The upgrade reflects a positive stance on the company's financial prospects, suggesting that Bridgepoint shares have room for growth. This potential for upside is seen as stemming from both the expected increase in earnings and the chance for the market to reassess the stock's value.
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