RBC retains 'outperform' rating for 3i infrastructure, upbeat about acquisition

RBC Capital has retained an ‘outperform’ rating and its price target for 3i Infrastructure, and said its new acquisition was promising.

The deal, which was subject to regulatory clearance, would see 3i have a 50% stake in ESGVAGT with AMP Capital.

Researchers at RBC said 3i’s investment in the Dutch emergency rescue operator would provide a strong level of dividends.

“We believe the ESVAGT investment has the hallmark characteristics of 3IN's previous (and successful) investment in Eversholt,” 3G said in a note.

ESVAGT provides a service to the oil and gas industry where the standards are regulated, meaning there is a high barrier of entry, RBC said.

Shares in 3i were up 0.18% to 166.5p on Tuesday at 0916 BST.