- Research analysts at Jefferies International say they have taken an in depth look at the relatively high portfolio valuation of HgCapital Trust [LON:HGT], using the investment trust's largest holding, Visma, as a 'canary in a coal mine'.

Following this review, the broker said that it had gained greater comfort over the valuation and has upgraded the stock to buy from hold, seeing further upside to come.

The broker commented: "Our findings offer additional reassurance over HGT's relatively high portfolio valuation. Elsewhere, we feel the recent results helped communicate the performance issues, portfolio immaturity, and excess cash that dogged the fund in 2013, are now a thing of the past.

"Although the shares have enjoyed a strong run since the results, we believe there is further upside, as they fully recapture the previous premium rating to peers."

The shares are up 15 per cent in the past three months.

At 1:50pm: [LON:HGT] HG Capital Trust PLC share price was +8p at 1168p

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