UBS Warburg has lowered its rating of investor 3i to Hold from Buy. The move reverses UBS’s upgrade of 3i exactly a month ago.
In a statement, the bank said that while 3i’s share price had risen 27 per cent over the last month, its listed portfolio had underperformed the LSE and Nasdaq.
In a statement, UBS said: “3i’s listed portfolio appears to have underperformed. We calculate that 3i’s largest 10 investments have only risen in value by two per cent. This contrasts with a rise of 9.4 per cent in the FTSE All Share and 12.2 per cent in Nasdaq.”
UBS also said that the exit outlook for 3i was bleak as flotations were “difficult” and the trade sale market was “expected to be slow”.
3i’s shares stood at 1289p when the downgrade was announced. They now stand at 1194p. Almost exactly a month ago, UBS upgraded 3i to Buy from Hold after 3i’s shares fell to 1014p.
No one at 3i could be reached for comment.
3i, Europe's largest listed venture capitalist, has been expanding. With Swedish private equity firm Ratos, it is to acquire Atle, a Swedish private equity firm. The deal will be 3i’s fourth acquisition in Europe since the beginning of last year.