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3i Group shares drop 40%, Citi sees buying chance ahead of Action's US expansion

Analyst Insights
24 Mar 2026
Proactive Investors
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Bullish
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3i Group PLC shares have fallen about 40% since their peak in October, underperforming the market due to slower sales growth at its key portfolio company, Dutch discounter Action. Citi views this slump as a temporary issue and expects inflation to boost discount retailer demand. The shares currently trade roughly 15% below Citi's net asset value estimate, with Action valued conservatively at 20 times 2027 earnings. An upcoming investor day on March 26 may reveal plans for Action's expansion into the US and Bulgaria, potentially acting as a catalyst. Citi maintains a 'buy' rating with a slightly reduced target price of £42.80.

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