Molten Ventures, a London-listed venture capital fund specializing in the technology sector, could see its shares surge by over 180%, according to Berenberg.
The fund, previously known as Draper Espirit, provides investors with a gateway to venture capital investing in high-growth tech companies, including British GPU maker GraphCore, fintech banks N26 and Revolut, and U.S.-listed AI company UiPath, The Financial Times reports.
Trading At A Discount
“Adding the growth of the company’s portfolio into the equation, we think that now is the time to gain exposure to the VC space before the company re-rates,” said Kurran Aujla, technology hardware analyst at Berenberg.
Aujla’s note, titled “Red-hot upside on offer,” suggests that Molten’s current trading at a 67% discount to its last-reported net asset value (NAV) is set to decrease as market valuations normalize and Molten liquidates some investments.
Projected Growth
Berenberg predicts that Molten’s shares, trading under the ticker GROW, will rise to £7.25 ($9.50) per share over the next year, despite a nearly one-third decrease over the last 12 months.
“Through preferred share classes, Molten has the first call on invested capital at realization, meaning that it does not realize all of the downside in its valuation,” Aujla added.
Analysts’ Take
Other analysts also share a bullish outlook on Molten’s stock. Numis Securities anticipates a 204% rise to £7.87 ($10.31) over the next year, while Goodbody’s Gerry Nennigan foresees a 215% increase to £8.15 ($10.67). Peel Hunt projects the stock at £5.43 ($7.11) in a year, marking a 109% upside.
Originally published on BusinessInsider.com
