GBL After delivering a solid recovery we expect momentum to moderate

GBL has reached our previous price target following its consistent performance since the Apr'25 Liberation Day low. Over this period, the discount compressed sharply from 45% to 22%, driven by visible strategy progress, growing recognition of unique private market access, and €335m share buybacks in FY25. The recent Rayner acquisition (€0.5bn for 45% co-control stake) marks the first clear execution of GBL's Nov'24 strategy to increase direct private asset exposure in priority sectors. It strengthens GBL's already successful healthcare segment. That said, most catalysts now appear largely priced in as the discount sits at its lowest in eight years. We apply a 20% target discount (up from 30%) to reflect the evolving private/public mix. Although we believe an even lower discount is appropriate, we still foresee time required to fully prove value creation from the upcoming investments. At our €116 target NAVps, our updated €93 price target implies moderate near-term upside. We move to Accumulate pending the full-year 2025 results on 12 Mar'26.